CEAT holds the pass when it comes to passenger vehicle tyres, and with its recent financial performance, many analysts have shared their views on this tyre giant. In this article, we will dive into it.
With a market capitalisation of Rs 15,027 crores, the shares of CEAT Ltd are currently trading at Rs 3,715 per share, down by 8.14 percent from its 52-week high of Rs 4,042.95 per share. Over the past five years, the stock has delivered a return of 300 percent.
Emkay Global has a target price of Rs 4,100, indicating a 13.3 percent potential upside from its previous day closing price. It is positive on CEAT’s fundamentals given its global expansion and discipline on pricing. It expects margin expansion in H2 FY25, spurred by CAMSO acquisition and share gains in OEM.
CLSA has given CEAT an ‘Outperform’ rating with a target of Rs 3,933 (8.7 percent upside) from its previous day closing price. It states CEAT will focus on CAMSO integration and recover margins, with it seeing 200–300 bps of margin expansion in FY26, and expects revenue to be Rs 10,312 crore in 3 years.
Nomura retained a ‘Buy’ rating with a price target of Rs 3,945 (9 percent upside), from its previous day closing price, anticipating an 11 percent revenue CAGR in FY25–27 driven by exports and OEMs. CEAT’s OHT mix could rise to 25 percent in the second half of FY26, leading peers.
Nuvama also gave a ‘Buy’ rating, aiming for Rs 3,800 (5 percent upside) from its previous day closing price. Nuvama forecasts limited domestic growth in FY26, but a positive export trajectory with OHTs and Exports having 25 percent and 26 percent market share after the acquisition of CAMSO. Nuvama expects revenue and EBITDA CAGR of 14 percent and 26 percent respectively, over FY25–27.
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Financial Highlights
CEAT reported a consolidated revenue of Rs 13,218 crores in FY25, up 10.66 percent from Rs 11,943 crores in FY24. It reported a net profit of Rs 471 crores in FY25, down 25.83 percent from Rs 635 crores in FY24.
CEAT Limited is an Indian tyre company that is a major producer of tyres, tubes, and flaps for two/three wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles. It has a wide range of products like car and bike/Scooter tyres, and makes tyres for popular models like Maruti Alto, Hero Splendor, Honda Activa.
Written by Satyajeet Mukherjee
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