Motilal Oswal Sees CIE Automotive India Reaching Target Price of Rs 546

Motilal Oswal Research Report: CIE Automotive India

Key Takeaways

We hosted CIE India management for a non-deal roadshow, and the key takeaways from the meeting are as follows:

• CIE India has witnessed a reversal in growth trend after GST rate cuts, boosting demand across all segments.
• The company has bagged new orders from non-anchor customers, expected to ramp up in the coming quarters and drive long-promised outperformance.
• In Europe, despite a weak demand outlook, CIE aims to sustain its margins at the "new normal" of demand.
• The current geopolitical conflict has not had a material impact on the company's business yet, but may lead to supply disruptions if it continues for a couple more weeks.
• Despite increasing input costs, management is confident of maintaining margins in India business as CIE continues to work on improving efficiencies.

Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts

Outlook

• The stock trades at 19.3x/17.7x CY26E/CY27E consolidated EPS.
• Reiterate BUY with a TP of INR546 (~21x CY27E consolidated EPS).