CIE Automotive Q3 Results Review - Inline; Margin Resilience Commendable; Reiterate 'Buy': Motilal Oswal

Motilal Oswal Report

CIE Automotive India Ltd.’s Q3 CY24 PAT met expectations, while Ebitda margin exceeded estimates at 15.5% (+30 basis points YoY) due to operational efficiencies. CIE Automotive’s operational resilience is highlighted by the fact that it was able to maintain margins YoY despite an 18% YoY decline in Europe revenues.

We cut CY25E earnings per share by 5% to factor in the weak demand in EU passenger vehicles and U.S. OHVs. However, CIE Automovie will continue to focus on maintaining its profitability, driven by operational efficiencies. The stock trades at 19.5 times/17 times CY25E/CY26E consolidated EPS. Reiterate Buy with a target price of Rs 605 (based on ~21x Sep’26E consolidated earnings per share).

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