CIE Automotive India has been recommended as a BUY by Geojit Financial Services, with a target price of Rs 578. The company, which is a subsidiary of a Spanish forging company, generates 60% of its revenue from India and the rest from Europe.

Although there was a slight decline of 2% in consolidated revenue compared to the previous year, it is expected that the Indian market will experience increased demand in the second half of the year due to infrastructure spending. In the latest quarter, CIE's revenue from Europe decreased by 6.4%, while the Indian segment saw a growth of 2%. The company's EBITDA margin has improved by 33 basis points year-on-year, thanks to lower input costs and effective cost management strategies. Analysts predict that CIE will maintain a margin of 15-16% for the years 2025 and 2026.

Additionally, the company is benefiting from increased business with existing customers due to supplier consolidation and localization efforts, which are enhancing the value proposition per vehicle.