CIE Automotive - Steady Compounder; Near-Term Headwinds Are Receding: ICICI Securities

ICICI Securities Report

We interacted with the management of CIE Automotive India Ltd. on May 27th -28th. Following are the takeaways:

1. Continued revival in two-wheelers, launch of Mahindra 3XO, positive outlook on tractors from H2 CY24, offtake from Hosur by Stellantis and Bosch from Q3 CY24 are the key growth catalysts in CY24;

2. Europe revenue growth is set to remain muted in CY24 amidst flat outlook for passenger vehicles and down cycle for Metalcastello;

3. CIE Automotive would focus on growth ahead instead of further margin expansion from current levels;

4. sticking to 5-6% capex/sales outlook with 80% of growth capex being dedicated to India;

5. not planning to enter sunroof business as of now and is focusing on plastic parts segment through feasible M&A ahead.

Maintain Buy on CIE Automotive with a revised target price of Rs 646 (earlier Rs 570), implying 22 times CY25 earnings, with target price change driven by 2% rise in earnings estimate and valuation rollover.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.