Earnings Miss: CIE Automotive India Limited Missed EPS By 7.3% And Analysts Are Revising Their Forecasts
It's been a sad week for CIE Automotive India Limited (NSE:CIEINDIA), who've watched their investment drop 13% to ₹414 in the week since the company reported its second-quarter result. It looks like the results were a bit of a negative overall. While revenues of ₹26b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.3% to hit ₹6.21 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from CIE Automotive India's five analysts is for revenues of ₹104.2b in 2026. This would reflect a modest 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 6.0% to ₹25.05. In the lead-up to this report, the analysts had been modelling revenues of ₹104.2b and earnings per share (EPS) of ₹26.68 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for CIE Automotive India
The consensus price target held steady at ₹511, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values CIE Automotive India at ₹560 per share, while the most bearish prices it at ₹450. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CIE Automotive India is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that CIE Automotive India's rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, CIE Automotive India is expected to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CIE Automotive India. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CIE Automotive India's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹511, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CIE Automotive India analysts - going out to 2028, and you can see them free on our platform here.
We also provide an overview of the CIE Automotive India Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.