Shares of this small-cap stock associated with tyre & rubber products soared up to 11 percent in Tuesday’s trading session after the company posted financial results for the quarter ended September 2023, i.e., Q2FY24.
With a market capitalization of Rs 8,858.57 crores, the stocks of Ceat Limited opened their trading hour on Tuesday at Rs 2,311.60 and currently trade at Rs 2,190. The company’s scrip witnessed an intra-day high price of Rs 2,333.90 indicating a gain of approximately 11 percent as compared to the previous close of Rs 2,101.30 apiece.
Such bullish sentiments around the company’s stock prices were observed after it published its financial results for Q2FY23-24 with the Bombay Stock Exchange through a regulatory filing.
On a sequential basis, the company’s prime business indicators such as the operating revenues as well as after-tax profits have gone up with the former moving up Rs 2,935 crores during Q1FY23-24 to Rs 3,053 crores during Q2FY23-24, and, the latter shifting up from Rs 144 crores to Rs 208 crores.
In congruence with the pattern shown above, the metrics mentioned above, on a YoY basis, showed positive movements with the operating revenues going up from Rs 2,894 crores during Q2FY22-23 to Rs 3,053 crores during Q2FY23-24, and, the after-tax profits moving up from Rs 6.4 crores to Rs 208 crores exhibiting a gain of around 3,150 percent.
Apart from the above, the profitability ratios of the company, during the previous periods, have shown decent growth with the return on equity (RoE) increasing from 2.14 percent during FY21-22 to 5.43 percent during FY22-23. Moreover, the return on capital employed (RoCE), keeping the timeframe the same, moved up from 5.97 percent to 9.10 percent.
As per the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 47.21 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 24.09 percent in the company.
Ceat Limited is a tyre manufacturer operating within the ‘RPG Group’. The company has a diverse product portfolio comprising off-the-road vehicles, truck tyres, light commercial vehicles, and many more.
Written by Amit Madnani
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