Buy CIE Automotive India, target price Rs 600: Axis Securities

Axis Securities has a buy call on CIE Automotive India Ltd. with a target price of Rs 600. The current market price of CIE Automotive India Ltd. is Rs 489.95. CIE Automotive India, incorporated in 1999, is a Mid Cap company with a market cap of Rs 18507.19 crore, operating in Auto Ancillaries sector.

CIE Automotive India's key products/revenue segments include Automotive Accessories, Other Operating Revenue and Sale of services for the year ending 31-Dec-2023.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 2158.89 crore, down -7.08% from last quarter Total Income of Rs 2323.32 crore and down -6.11% from last year same quarter's Total Income of Rs 2299.43 crore. The company has reported net profit after tax of Rs 193.36 crore in latest quarter.

Investment Rationale
The CIE Automative India management has indicated that the company will continue to outperform the overall Indian industry in the medium term, with European businesses expected to remain depressed before gradually recovering in line with industry growth. The current valuation is 1-year forward 26xPE (unchanged) on Indian and 8x (earlier 9x) PE on European CY26 EPS (unchanged). The current target price is Rs 600/share (earlier Rs 650/share). Axis Securities maintains a BUY rating on the stock.

Promoter/FII Holdings
Promoters held 65.7 per cent stake in the company as of 30-Sep-2024, while FIIs owned 4.32 per cent, DIIs 20.33 per cent.