Ceat - Growth To Be Driven By Digitisation, Advanced Manufacturing: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Ceat Ltd. hosted the investing community, followed by a plant visit to its Chennai facility showcasing its factory, which is focused on digitisation and advanced manufacturing processes. Following these practices, original equipment manufacturer approvals from this new plant have now dropped to 25 months (versus five years from a new greenfield capacity). The company continues to focus on key strategic areas such as passenger vehicle/two-wheeler/off-highway tyre (to help margins), along with the expansion in international markets and increasing business in electric vehicles. This, along with prudent capex plans (to benefit free cash flow), should be a long-term growth catalyst for the company. Valuations at 16.6 times/15.3 times FY24E/FY25E consolidated earning per share do not fully capture the benefits from the new capacities and softening of raw material costs. We reiterate our 'Buy' rating with a target price of Rs 3,290 (roll forward to ~15 times FY26E earnings per share)..Click on the attachment to read the full report:.Tata Motors Shares Gain Even As Analysts See Better Value Discovery Ahead.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ceat - Growth To Be Driven By Digitisation, Advanced Manufacturing: Motilal Oswal

No greenfield capex in FY25/26, but focus on existing capacity expansion

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