Motilal Oswal (MOSL) has reiterated its ‘Buy’ rating on CIE India with a target price of ₹575/share, driven by the strong growth outlook for its Indian operations. The brokerage believes that the Indian business will continue to be the growth driver for the company, even as the European business faces persistent headwinds due to weakness in auto demand. Management aims to sustain margins for the European business at current levels, despite challenging conditions.
On the domestic front, CIE India targets margin expansion to 19% over the next 2-3 years, supported by improving operational efficiencies and better capacity utilization. However, MOSL has revised its CY25 and CY26 estimates down by 4% and 5%, respectively, to reflect the continued slowdown in Europe. Despite this, the brokerage remains optimistic about CIE India’s long-term growth potential, citing strong execution capabilities, a robust order book, and the resilience of its Indian operations.
