CEAT Ltd (CEATLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TVS Srichakra

Balkrishna Inds

Goodyear India

Apollo Tyres

MRF

Tolins Tyres

CEAT

JK Tyre & Indust

Megamont

Modi Rubber

Horizon Reclaim

Why is CEAT Ltd ?

PBT LESS OI(Q) At Rs 33.00 cr has Fallen at -86.7% (vs previous 4Q average)
PAT(Q) At Rs 4.00 cr has Fallen at -97.9% (vs previous 4Q average)
INTEREST(Q) At Rs 146.00 cr has Grown at 71.76%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CEAT for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

CEAT

15.9%

0.41

38.97%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.42%

EBIT Growth (5y)

13.39%

EBIT to Interest (avg)

2.87

Debt to EBITDA (avg)

2.00

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

1.90

Tax Ratio

32.21%

Dividend Payout Ratio

20.28%

Pledged Shares

Institutional Holding

36.02%

ROCE (avg)

12.55%

ROE (avg)

10.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.98

EV to EBIT

14.15

EV to EBITDA

9.03

EV to Capital Employed

2.21

EV to Sales

1.11

PEG Ratio

0.58

Dividend Yield

1.75%

ROCE (Latest)

16.31%

ROE (Latest)

14.80%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

PAT(9M)

At Rs 450.81 cr has Grown at 33.54%

NET SALES(Q)

Highest at Rs 4,318.00 cr

-19What is not working for the Company

PBT LESS OI(Q)

At Rs 33.00 cr has Fallen at -86.7% (vs previous 4Q average

PAT(Q)

At Rs 4.00 cr has Fallen at -97.9% (vs previous 4Q average

INTEREST(Q)

At Rs 146.00 cr has Grown at 71.76%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.50 times

PBDIT(Q)

Lowest at Rs 365.00 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 8.45%

EPS(Q)

Lowest at Rs 1.00

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Here's what is working for CEAT

Net Sales - Quarterly

Highest at Rs 4,318.00 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for CEAT

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 33.00 cr has Fallen at -86.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 247.71 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 4.00 cr has Fallen at -97.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 186.74 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 146.00 cr has Grown at 71.76%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 2.50 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 146.00 cr

in the last five quarters and Increased by 71.76 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 365.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 8.45%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 33.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.00

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)