Motilal Oswal Reiterates Buy Recommendation on CIE Automotive India, Sets Target Price at Rs 542

CIE Automotive India Exceeds Expectations in Q1CY26, Motilal Oswal Maintains BUY Rating

CIE Automotive India, a leading automotive component manufacturer, has reported impressive results for the first quarter of the current year (1QCY26). According to the company's latest financials, its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) stood at INR4 billion and INR2.4 billion, respectively. These figures have surpassed the estimates of Motilal Oswal, a leading research firm, which had predicted EBITDA and PAT of INR3.7 billion and INR2.2 billion, respectively.

The better-than-expected performance can be attributed to the company's strong performance in both India and Europe. Despite facing input cost headwinds, CIEINDIA's India business managed to maintain its quarterly (QoQ) margins. Additionally, the company's EU business saw significant margin expansion following restructuring efforts last year.

Valuation and Recommendation

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The stock of CIE Automotive India is currently trading at a multiple of 18.2x and 17.1x its consolidated estimated earnings per share (EPS) for the current financial year (CY26E) and the next financial year (CY27E), respectively. Motilal Oswal has reiterate its BUY rating on the stock with a target price of INR542, which is equivalent to 20x its consolidated estimated EPS for March 2028 (Mar'28E).