CIE Automotive India Limited Just Missed Revenue By 6.0%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that CIE Automotive India Limited (NSE:CIEINDIA) released its quarterly result to the market. The early response was not positive, with shares down 7.0% to ₹496 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹21b, statutory earnings were in line with expectations, at ₹21.03 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for CIE Automotive India

Taking into account the latest results, the consensus forecast from CIE Automotive India's five analysts is for revenues of ₹103.1b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 23% to ₹26.63. Before this earnings report, the analysts had been forecasting revenues of ₹106.3b and earnings per share (EPS) of ₹28.14 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The consensus price target fell 5.6% to ₹607, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on CIE Automotive India, with the most bullish analyst valuing it at ₹711 and the most bearish at ₹449 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CIE Automotive India is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for CIE Automotive India going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for CIE Automotive India you should be aware of.

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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.