Ceat's Robust Q2 Driven By Topline Momentum, Improved Margins; Nirmal Bang Maintains 'Buy'

Favorable tax reforms, rising EV adoption, and ongoing premiumization trends are expected to drive healthy single-digit growth in India’s tyre market in the near term..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..Nirmal Bang Report.Ceat Ltd. remains our preferred structural play in the tyre sector, supported by its leadership in two-wheelers, growing presence in premium categories such as SUVs and 150cc+ motorcycles, and expanding global footprint following the CAMSO acquisition. Favorable tax reforms, rising EV adoption, and ongoing premiumization trends are expected to drive healthy single-digit growth in India’s tyre market in the near term. We build in volume growth of 9% CAGR over FY25-27E led by increasing traction in the passenger car radial OEM business, exports, and the off-highway trye segment. We maintain Buy on Ceat and roll over the target price to Rs 4,545 valuing it at 17x Sep-27EPS. We have raised our FY26 estimates to factor in stronger than expected volume growth across segments and improved margins driven by a softer raw material basket. Ceat’s calibrated investment in expanding premium 21-inch PCUV radial capacity/Camso acquisition is unlikely to have a significant impact on ROCE or ROE, given its disciplined capex approach and focus on maintaining healthy return ratios..Click on the attachment to read the full report:.Federal Bank Q2 Review — Dolat Capital Maintains 'Add' On Improved Margins; Steady Asset Quality.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's Robust Q2 Driven By Topline Momentum, Improved Margins; Nirmal Bang Maintains 'Buy'

Ceat remains well positioned in the electrification trend, commanding ~30% OEM market share in the passenger EV segment with consistent approvals across leading models.

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