Motilal Oswal has issued a buy rating on CIE Automotive India with a target price of ₹501 in its research report dated July 23, 2026. According to the brokerage's analysis, the stock currently trades at 16.4x/15.5x CY26E/CY27E consolidated EPS at the current market price. The target price is premised on approximately 18x March 2028E consolidated EPS.
The company's Q2CY26 EBITDA of ₹4 billion and PAT of ₹2.3 billion came in line with expectations, as reported by Motilal Oswal. India revenue grew 12.4% year-on-year, though this underperformed the broader industry. The underperformance was attributed to three key factors: restructuring of the 2W aluminum portfolio by exiting low-growth businesses, no growth in export revenue, and weak production for certain key OEMs during the quarter.
According to Motilal Oswal's report, the company's Europe operations will continue to focus on maintaining margins at reduced demand. The brokerage noted that this strategic approach was lacking in the recent past, indicating a shift in operational strategy. The research report emphasizes the company's focus on operational efficiency and margin management in challenging market conditions.
