Shares of CEAT Ltd. were trading higher on Friday after the company posted a better-than-expected jump in net profit for the fourth quarter of FY23.
The tyre maker clocked a net profit of Rs 132.42 crore, a fivefold growth from its profit in the year-ago quarter, according to a stock exchange filing. Bloomberg had estimated a net profit of Rs 83.63 crore for the company.
Revenue increased 11% year-on-year to Rs 2,875 crore.
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CEAT Q4 FY23 (Consolidated, YoY)
Revenue is up 11% at Rs 2,875 crore (Bloomberg estimate: Rs 2,904.41 crore).
Ebitda is up 96% at Rs 367.81 crore (Bloomberg estimate: Rs 295.46 crore).
Ebitda margin was 13% vs. 7% (Bloomberg estimate: 10.2%).
Net profit is up fivefold at Rs 132.42 crore (Bloomberg estimate: Rs 83.63 crore).
The board approved a final dividend of Rs 12 per share for the fiscal ended March 31, 2023.
The stock rose 3.67% to close Rs 1,716.6 apiece, compared to a 1.02% decline in the benchmark Nifty 50.
The total traded quantity the day stood at 5.9 times the 30-day average volume. The relative strength index stood at 76, indicating that the stock may be overbought.
Of the 24 analysts tracking the stock, 15 maintain a 'buy,' three suggest a 'hold,' and six recommend a 'sell,' according to Bloomberg data.
The average of the consensus price targets implies a potential downside of 2.2% over the next 12 months.
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