CIE Automotive shares tumble 12% after Q1 results; MOFSL says this

Shares of CIE Automotive India Ltd tumbled 12.11 per cent in Thursday's trade to hit a low of Rs 415.05 after the auto components maker announced its June quarter (Q1 FY27) results.

Motilal Oswal Financial Services (MOFSL) said the company's adjusted profit after tax (PAT) rose 15.5 per cent year-on-year (YoY) to Rs 230 crore, but missed its estimate of Rs 240 crore.

The domestic brokerage noted that CIE Automotive's consolidated revenue grew 11 per cent YoY to Rs 2,620 crore, broadly in line with its estimate of Rs 2,600 crore.

"Revenue growth was led by ~12 per cent growth in the India business and currency translation benefits in the Europe business (13 per cent benefit)," MOFSL said.

Consolidated EBITDA stood at around Rs 390 crore, in line with the brokerage's estimates and up 15.7 per cent YoY. EBITDA margin came in at 14.9 per cent, compared with MOFSL's estimate of 15.1 per cent. The margin expanded 70 basis points (bps) YoY but declined 50 bps on a quarter-on-quarter (QoQ) basis.

On the India business, MOFSL said revenue increased 12.4 per cent YoY to around Rs 1,700 crore, in line with expectations. However, India EBITDA margin stood at 15 per cent, below its estimate of 15.5 per cent and down 70 bps YoY.

"Margins were slightly impacted by energy/gas/material cost inflation due to the conflict in West Asia," the brokerage said.

For the Europe business, MOFSL said revenue rose 7.4 per cent YoY to Rs 920 crore, broadly in line with its estimate of Rs 890 crore. It noted that the entire growth was from currency translation benefits, while revenue in euro terms declined 6 per cent YoY.

"Margins expanded 300 bps YoY to 14.6 per cent, marginally above our estimate of 14.4 per cent. Margin expansion was due to restructuring benefits of Legazpi and Metalscastello," MOFSL added.

The brokerage also highlighted the company's cash generation. For H1 CY26, consolidated cash flow from operations (CFO) stood at around Rs 620 crore, while free cash flow remained positive at Rs 490 crore.

MOFSL further said the stock is currently trading at around 18.2 times CY26E consolidated EPS and 17.3 times CY27E consolidated EPS.