Motilal Oswal Maintains Buy Rating on CIE Automotive India, Sets Target Price at Rs 539
CIE Automotive India (CIEINDIA) Financial Report
Summary
CIE Automotive India's consolidated profit after tax (PAT) for the period under review was INR 2.1 billion, in line with our estimates. The company's India business performance exceeded expectations, while its European operations failed to meet our forecasts.
Business Performance
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The India business is expected to be the primary growth driver for CIEINDIA, even in CY26. The company remains committed to sustaining profitability through operational efficiencies.
Valuation and Recommendation
The stock trades at a valuation of 19x/18.1x for CY26E/CY27E consolidated earnings per share (EPS). Based on our analysis, we reiterate a BUY recommendation with a target price of INR 539 (based on 21x CY27E consolidated EPS).
Investor Takeaway
Investors should consider buying CIE Automotive India stock due to its attractive valuation and growth prospects.
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