Ceat Ltd. shares hit life high on Monday after second quarter financial results came higher than expected.
Consolidated revenue grew by 14% year-on-year to Rs 3,772 crore, beating the Bloomberg consensus estimate of Rs 3,673 crore. Net Profit jumped by 52% to Rs 185 crore against the estimated Rs 140 crore.
Operational profitability improved with Ebitda rising by 39% to Rs 506 crore, exceeding the Rs 428 crore estimate. Ebitda margin expanded by 240 basis points, reaching 13.4%, compared to a forecast of 11.7%.
Ceat reported healthy YoY volume growth, led by OEM and International Business segments. The company said the international business is recovering well amid the global tariff uncertainity, and witnessing strong demand from key clusters.
The share of OEMs rose to 29% from 26% in the corresponding period last year. Replacement slipped to 52% from 55%. Exports were flat at 19%.
Realisations improved marginally on an annual and sequential basis.
Ceat Share Price Movement
Ceat share price advanced 10.3% intraday to Rs 4,117 apiece. The benchmark Nifty 50 was up 0.6%.
The stock has risen 38% in the last 12 months and 27% on a year-to-date basis. The total traded volume so far in the day stood at 19 times its 30-day average with a turnover of Rs 854 crore. The relative strength index was at 52.
Out of the 21 analysts tracking Ceat, 15 have a 'buy' rating on the stock, and three each recommend a 'hold' and a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 4,161, which implies a potential upside of 2%.
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