CEAT Downgraded to 'Hold' by MarketsMOJO, Technical Factors Cited

CEAT, a midcap company in the Tyres & Allied industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 14, 2024. This decision was based on technical factors, as the stock is currently in a Mildly Bullish range and both its MACD and KST indicators are also Bullish.
Despite this, CEAT still has an attractive valuation with a ROCE of 19.8 and a 2.4 Enterprise value to Capital Employed. In addition, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, CEAT has generated a return of 40.18%, while its profits have risen by 103.4%. This results in a low PEG ratio of 0.2 for the company.

One factor that may contribute to the stock's performance is its high institutional holdings at 35.86%. These investors have the capability and resources to thoroughly analyze the fundamentals of companies, making their support a positive sign for CEAT.

Furthermore, CEAT has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company's results for the quarter ending June 2024 were flat, with a decrease in PAT of -12.7% and the lowest PBDIT and operating profit to net sales in the last 3 years.

Overall, while CEAT may have some positive factors, the recent downgrade to 'Hold' suggests caution for investors. It is important to closely monitor the company's performance and future developments in the Tyres & Allied industry before making any investment decisions.