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CEAT Limited
(CEATLTD)
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Rating:61Neutral
Price Target:
₹3,542.00
▲(6.51% Upside)
Action:Reiterated
Date:10/15/26
The score is driven primarily by steady top-line growth and a profitability recovery versus the 2022 low, but capped by inconsistent free-cash-flow conversion and higher leverage. Technicals are neutral-to-soft (below key longer-term moving averages), and valuation is middling with a modest dividend yield. Earnings-call commentary reinforces the trade-off between strong demand/expansion progress and near-term margin and cost pressures.
Positive Factors
Broad-based revenue growth
Strong growth across volumes, pricing and product channels indicates broad demand rather than reliance on one narrow market. Continued expansion in OEM, replacement and international sales can improve scale, strengthen customer relevance and support durable revenue growth over the next several quarters.
Negative Factors
Raw-material inflation and margin pressure
The substantial gap between current and target gross margin shows that cost inflation is materially affecting profitability. Further raw-material increases require continued price actions, but delayed or incomplete pass-through could keep margins under pressure and limit earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth
Strong growth across volumes, pricing and product channels indicates broad demand rather than reliance on one narrow market. Continued expansion in OEM, replacement and international sales can improve scale, strengthen customer relevance and support durable revenue growth over the next several quarters.
Read all positive factors
CEAT Limited (CEATLTD) vs. iShares MSCI India ETF (INDA)
Market Cap
₹127.27B
Dividend Yield1.11%
Average Volume (3M)5.16K
Price to Earnings (P/E)24.5
Beta (1Y)1.24
Revenue Growth24.48%
EPS Growth4.36%
CountryIN
Employees10,000
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)146.05
Shares Outstanding40,450,092
10 Day Avg. Volume7,167
30 Day Avg. Volume5,156
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)2.60
Price to Sales (P/S)0.84
P/FCF Ratio37.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)120.5
Revenue Forecast (FY)₹187.46B
CEAT Limited Business Overview & Revenue Model
Company Description
CEAT Limited is a manufacturer and global distributor of automotive tires, inner tubes, and protective flaps, serving both the Indian market and a vast international clientele. The company's comprehensive product portfolio features rubber tires an...
How the Company Makes Money
CEAT primarily makes money by selling tires and related products through two main routes: (1) OEM supply and (2) the replacement/aftermarket. In the OEM channel, CEAT supplies tires directly to vehicle manufacturers for fitment on new vehicles; re...
CEAT Limited Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Neutral
The call reflected strong operating momentum, record revenue, broad-based volume growth, progress in Camso integration, and continued expansion in premium, EV, international, digital, and OHT businesses. However, substantial raw material inflation, gross margin pressure, year-over-year EBITDA and profit declines, freight and tariff challenges, demand moderation risks, and higher working capital and leverage were significant counterpoints. Overall, the positive business growth was balanced by material profitability and cost pressures.Positive Updates
Record Consolidated Revenue and Strong Growth
Consolidated net revenue reached an all-time high of INR 4,762 crores in Q2 FY 2027, growing 26.2% year over year. Approximately 40% of the growth came from volumes, with the balance from positive price and mix.
Negative Updates
Significant Raw Material Cost Inflation
Raw material costs increased approximately 8%-9% sequentially in Q2 after rising about 15% in Q1 versus March exit prices. Q3 raw material costs are expected to increase another 3%-3.5% over Q2, resulting in a total increase of about 27% over the March exit price by December.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Consolidated Revenue and Strong Growth
Consolidated net revenue reached an all-time high of INR 4,762 crores in Q2 FY 2027, growing 26.2% year over year. Approximately 40% of the growth came from volumes, with the balance from positive price and mix.
Read all positive updates
Company Guidance
Management expects Q3 RMC to be about 3% higher than Q2, taking the total increase to 27% over March exit price by December, with continuous price hikes in quarter three; replacement demand is expected to grow at mid-single digit for commercial vehicle tires, low single digit for passenger, double digits for two-wheeler, and farm could be low growth over last year in second half. Camso customer transition is about 85% complete and is expected to be completed in quarter three, half two volumes are expected to grow by 20%+ on half one actual volume base, the business is expected to be EBITDA positive in half two and EPS accretive at consolidated level by FY 2029, with gross margin visibility to extent of 50%-55%; Camso upstream CapEx is expected in the range of INR 100 crores-INR 150 crores over and above standalone CapEx, while overall CapEx is around INR 1,400 crores plus INR 150 levels. Standalone working capital is targeted at zero to INR 100 crore level in the next one to two quarters time in a normal and stable environment, and 2.1x kind of a debt-to-EBITDA could be taken as a guiding principle during the current year.CEAT Limited Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
64
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.67B | 156.78B | 132.18B | 119.43B | 113.15B | 93.63B |
| Gross Profit | 44.69B | 44.07B | 48.76B | 49.08B | 38.33B | 32.52B |
| EBITDA | 16.38B | 20.32B | 14.75B | 16.53B | 9.74B | 7.21B |
| Net Income | 5.90B | 6.98B | 4.73B | 6.43B | 1.86B | 712.00M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 139.02B | 112.12B | 99.94B | 96.28B | 91.60B |
| Cash, Cash Equivalents and Short-Term Investments | 433.00M | 2.92B | 496.40M | 565.90M | 689.90M | 326.40M |
| Total Debt | 0.00 | 32.72B | 21.36B | 17.91B | 22.95B | 22.29B |
| Total Liabilities | -50.54B | 88.48B | 68.36B | 59.42B | 61.71B | 58.64B |
| Stockholders Equity | 50.54B | 50.46B | 43.69B | 40.43B | 34.40B | 32.73B |
Cash Flow | ||||||
| Free Cash Flow | 4.55B | 3.54B | 1.49B | 8.52B | 3.26B | -3.40B |
| Operating Cash Flow | 8.74B | 15.01B | 10.92B | 17.19B | 12.05B | 6.19B |
| Investing Cash Flow | -15.13B | -22.97B | -9.22B | -8.54B | -8.49B | -9.44B |
| Financing Cash Flow | 6.67B | 7.88B | -1.77B | -8.71B | -3.20B | 3.13B |
CEAT Limited Technical Analysis
Negative
3325.45
Price Trends
3360.07
Negative
3435.35
Negative
3484.95
Negative
Market Momentum
-59.17
Positive
40.17
Neutral
22.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CEATLTD, the sentiment is Negative. The current price of 3325.45 is above the 20-day moving average (MA) of 3247.97, below the 50-day MA of 3360.07, and below the 200-day MA of 3484.95, indicating a bearish trend. The MACD of -59.17 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CEATLTD.
CEAT Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹243.59B | 14.21 | ― | 1.56% | 11.23% | 105.46% | |
67 Neutral | ₹412.49B | 29.49 | ― | 0.74% | 9.78% | -3.28% | |
67 Neutral | ₹500.50B | 20.73 | ― | 0.20% | 11.37% | 34.26% | |
61 Neutral | ₹127.27B | 24.55 | ― | 1.11% | 24.48% | 4.36% | |
58 Neutral | ₹31.45B | 34.04 | ― | 0.92% | 18.56% | 244.54% | |
56 Neutral | ₹87.48B | 17.52 | ― | 1.32% | 12.54% | -11.70% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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CEAT Limited
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CEAT Limited Corporate Events
CEAT opens special window for legacy physical share transfers
Oct 8, 2026
CEAT Limited has opened a special window in line with a Securities and Exchange Board of India circular to facilitate re-lodgement of physical share transfer requests that were originally submitted on or before April 1, 2019 and were rejected, ret...
CEAT updates exchanges on issuance of duplicate share certificates
Sep 30, 2026
CEAT Limited has disclosed to the BSE and NSE that its registrar and transfer agent, NSDL Database Management Limited, has processed the issuance of duplicate share certificates for certain shareholders. The move is in line with regulatory require...
CEAT Says Methanol License Suspension Unlikely to Hit Operations
Aug 19, 2026
CEAT Limited has disclosed that the Maharashtra Food and Drug Administration has ordered a temporary suspension of its license to procure methanol between September 1 and September 15, 2026, citing alleged violations of Maharashtra Poisons Rules r...
CEAT issues public notice on lost share certificates, warns investors
Jul 30, 2026
CEAT Limited has published a public notice in the Financial Express regarding the loss or misplacement of certain physical share certificates registered in the name of a shareholder. The company has indicated that the shareholder has applied for d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.