CIE Automotive India- Brokerage expects margin boost, check best price to buy

CIE Automotive India: Brokerage expects margin boost, check best price to buy

The shares of CIE Automotive India surged 1.02% intraday on August 18, on the National Stock Exchange. The analysts at Geojit Financial Services have recommended a ‘Buy’ rating for the scrip, stating that the “current growth story in the domestic market and the focus on building the EV product portfolio and operational performance in the European business are likely to push the margin forward.”

The brokerage report said, “We expect the company’s overall margin improvement trend to continue for India and European businesses (15-16%), due to cost rationalising and supplier consolidation in the international business.

“We expect normal growth in the domestic car segment for the year due to a high base and fading pent-up demand. In addition, there is the possibility of a tightening in International business in the near term. However, the long-term growth prospects are intact, and we expect a re-rating in valuation similar to listed MNCs in the automotive sector. We value CIE at 21x CY24E EPS and recommend a buy rating with a target price of Rs 576,” the report added.

CIE Automative’s market capitalization stands at Rs 18.32k crore. The company’s P/E ratio is 31.88, and the ROE stands at 12.15. The shares have shown mixed performance over the last one year. The stock price has fallen 1.4% in the last one week and 8.9% in the last one month, while it surged 23.6% in the last 6 months and a whopping 70.9% in the last one year. The 52-week high for the stock is at Rs 578.10 on July 19, 2023, whereas the stock hit the 52-week low of Rs 252.35 on September 28, 2022.