CEAT Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation.

CEAT, a midcap company in the tyres and allied industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a mildly bullish trend and has improved technically since November 7, 2024, generating a return of -1.62%. One key technical factor, the Bollinger Band, has also been bullish since the same date.
In terms of valuation, CEAT has an attractive ROCE of 16.4 and a 2.2 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. Despite a 33.91% return in the past year, the company's profits have only risen by 13.5%, resulting in a PEG ratio of 1.4.

One positive aspect for CEAT is its high institutional holdings at 36.39%. These investors have the capability and resources to thoroughly analyze a company's fundamentals, making their increased stake of 0.53% in the previous quarter a good sign for the stock.

However, the company did report negative results in September 2024, with a -28.9% fall in PAT(Q) at Rs 121.90 crore. The OPERATING PROFIT TO INTEREST (Q) was also at its lowest at 5.45 times, while PBDIT(Q) was at its lowest at Rs 362.28 crore.

Despite these negative results, CEAT has consistently generated returns over the last 3 years and has outperformed BSE 500 in each of the last 3 annual periods. With a 'Hold' rating from MarketsMOJO, investors may want to keep an eye on CEAT and its future performance.