Buy CIE Automotive India; target of Rs 546: Motilal Oswal

About this update from Cie Automotive India Ltd

Motilal Oswal's research report on CIE Automotive IndiaWe hosted CIE India management for a non-deal roadshow, and below are the key takeaways. Over the last few quarters, CIE had witnessed slower growth in its India business; however, this trend has reversed after GST rate cuts, which have boosted demand across all segments. Moreover, it has bagged new orders from non-anchor customers, which are expected to ramp up in the coming quarters and help drive its longpromised 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, though it 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.OutlookThe stock trades at 19.3x/17.7x CY26E/CY27E consolidated EPS. Reiterate BUY with a TP of INR546 (~21x CY27E consolidated EPS).Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.CIE Automotive India - 2303026 - moti

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