01 — At a Glance
The Parts Company That’s Actually Worth Your Time
- 52-Week High / Low₹526 / ₹357
- CY25 Revenue (Full Year)₹9,406 Cr
- CY25 PAT (Full Year)₹828 Cr
- Full-Year EPS (CY25)₹21.83
- Annualised EPS (Q4×4)₹21.56
- Book Value₹197
- Price to Book2.40x
- Dividend Yield1.48%
- Debt / Equity0.06x
- Return (6M, 3M)14.1% / 14.0%
Auditor’s Opening Note: CIE Automotive closed CY25 with ₹9,406 crore revenue (+6% YoY), ₹828 crore PAT (~flat YoY, excluding one-time gratuity hit), 14.7% ROCE, and a dividend yield of 1.48% on CMP ₹473. But here’s the kicker: the stock delivered +19% returns over one year while the market obsessed over AI and EV. The company is making real money from real OEMs. Boring? Absolutely. Profitable? Also absolutely.
02 — Introduction
Who Even Makes Car Parts Anyway?
Meet CIE Automotive India — a Spanish multinational’s weapon of choice for global automotive supply. They make forgings. Castings. Gears. Stampings. Composites. Magnetic products. Basically, every component that goes into a car except the car itself. And they do it across 26 manufacturing facilities spanning India, Europe, Mexico, Germany, Spain, Lithuania, and Italy.
Think about your car’s crankshaft, gearbox housing, steering shaft, CV joints, suspension knuckles. Chances are — statistically speaking — that part came from CIE. They’re Category 1 suppliers to Maruti, Bajaj, Mahindra, Tata, Hero, Hyundai, Kia, and global majors like Renault, VW, Ford, BMW. They’ve never missed a delivery. Their credit rating is AA (Stable) from ICRA. Their leverage is 0.06x. They’re the anti-meme stock.
CY25 was a weird year. India business grew 8% (double digits in H2). Europe contracted 6% in local currency — because European forgings got hammered by Chinese competition and EV transition anxiety. But management executed flawlessly: restructured the loss-making units, reallocated capacity, and still printed ₹828 crore PAT. Now they’re moving capacity from Europe to India, launching new customer platforms, and preparing for the electrification wave.
This is not a stock you’ll find in your neighborhood Slack channel. But it’s the kind of stock that quietly compounds through market cycles because the world will always need forgings, castings, and gearbox housings — whether they’re bolted into a 1.5L petrol sedan or a 400 kWh EV.
Concall Highlight (Feb 2026): “India is in a very good path… automotive sector in India will be one of the winners in 2026 for sure.” — Management, speaking with actual conviction, not investor-relations fluff.
03 — Business Model: Engineering At Scale
They Make Stuff That Makes Your Car Go Vroom.
CIE’s business is deceptively simple: buy raw materials (steel, aluminium, magnesium, composite resins), apply 150+ years of global engineering expertise, manufacture components to OEM specifications (tolerances down to 0.1mm), deliver on schedule, repeat forever. They’ve got six core business segments — forgings, castings, gears, stampings, composites, and magnetic products — each serving different end-markets (passenger vehicles, commercial vehicles, 2-wheelers, tractors, off-highway equipment).
Forgings remain the largest (54% of revenue) and most profitable segment. Lightweight, durable, used in everything from crankshafts in economy cars to suspension components in premium vehicles. Gears and castings are scaling fast, especially in EV applications where battery housings and cooling components drive volume. Composites and magnetic products are niche but high-margin (used in steering columns, composite leaf springs, EV drivetrain components).
The flywheel: strong OEM relationships → long-term contracts → predictable cash flows → reinvestment in capacity → new customer wins → margin expansion. CIE operates across three geographies — India (65% of CY25 revenue), Europe (32%), and Mexico (3%, reported under Europe from CY25). India is the growth engine; Europe is the cash cow undergoing restructuring.
Forgings54%Core Business
Castings18%Growing
Gears11%EV-Linked
Other17%Stamping+
Geographic Note: India revenue grew +12% YoY in Q4 CY25 (highest quarterly sales in India ever, per management). Europe contracted -6% in EUR terms (translation masked by INR weakness). Mexico (small, ~₹150 cr) now consolidated under Europe following a capital increase. This mix shift is significant — India is the future, Europe is the past shrinking gracefully.
💬 How many car parts companies can you name off the top of your head? Exactly. Now imagine one of the ones you can’t name is worth ₹18,000 crore.
04 — Financials Overview
Q4 CY25: The Numbers That Don’t Scream But Whisper Profit
Result type: Quarterly Results | Q4 CY25 EPS: ₹5.39 | Annualised EPS (Q4×4): ₹21.56 | Full-year CY25 EPS: ₹21.83
| Metric (₹ Cr) |
Q4 CY25
Dec 2025 |
Q4 CY24
Dec 2024 |
Q3 CY25
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 2,393 | 2,110 | 2,372 | +13.4% | +0.9% |
| Operating Profit | 335 | 299 | 356 | +11.9% | -5.9% |
| OPM % | 14% | 14% | 15% | Flat | -100 bps |
| PAT | 204 | 185 | 214 | +10.3% | -4.7% |
| EPS (₹) | 5.39 | 4.88 | 5.64 | +10.5% | -4.4% |
What Happened: Full-year CY25 EPS of ₹21.83 vs CMP ₹473 = P/E of 21.8x. This is NOT cheap. Industry median for auto suppliers is 26.5x, so CIE trades at a slight discount. But here’s the reality check: CY25 PAT was flat (₹828 cr) YoY because of one-time headwinds (India labour code gratuity provision: ~₹132 cr; Europe restructuring costs). Adjust those out, and PAT grew ~3-4%. Revenue growth was real (+6% consolidated). The “flatness” is accounting noise hiding execution excellence.
05 — Valuation: Fair Value Range
What’s This Forgings Company Actually Worth?
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