Ceat Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 5737.64 Crore) operating in Tyres sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2292.89 Crore, up 3.04 % from last quarter Total Income of Rs 2225.30 Crore and up 45.40 % from last year same quarter Total Income of Rs 1576.92 Crore. Company reported net profit after tax of Rs 145.20 Crore in latest quarter.
Investment Rationale
CEAT’s steadfast focus on the B2C segment continues, with a revenue target of 60-65% from the 2W, PCR, and OHT segments. It is backing its market share aspirations in 2W, PCR, and TBR with significant capacity additions. The brokerage expects revenue/EBITDA/PAT CAGR of ~16%/15%/7% over FY21-23E. Valuations at 10.9x FY23E consolidated EPS doesn’t fully capture ramp-up in new capacities in an improving demand environment, leading to a recovery in margin.
Promoter/FII Holdings
Promoters held 46.8 per cent stake in the company as of March 31, 2021, while FIIs held 27 per cent, DIIs 13.7 per cent and public and others 12.6 per cent.
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