Ceat - Profitability On A Comeback Trail: ICICI Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Ceat Ltd. has corrected ~16% in past three months and during this period, though outlook on demand did not change, raw material basket cost declined by ~7-8%, resulting in limited scope of cut in FY24-25E earnings. Additionally, Ceat is expanding into off-highway tryes exports space with rising stock keeping units and wider distribution network and is planning to expand capacity in its all radial Ambernath (Maharashtra) facility from 60 tpd to 140 tpd in next 12-18 months. We believe, amid low growth and high competition in domestic replacement tyre market, Ceat is looking forward to ramp-up exports briskly in FY24-25 from current ~20% revenue mix. Ceat has its portfolio of electric vehicle-dedicated tyres ready, across categories, with low rolling resistance and higher silica content. With capacity utilisation in truck-bus radial space across FY23 set to be in the band of 75-80% for Ceat, capex for FY23-24E is likely to be sub-Rs 10 billion per annum, helping it avoid any increase in debt on books. .Click on the attachment to read the full report:.Ceat - R&D Capabilities To Drive Growth In Exports, EV: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ceat - Profitability On A Comeback Trail: ICICI Securities

We believe, amid low growth and high competition in domestic replacement tyre market, Ceat is looking forward to ramp-up exports.

Choose a plan