ScoreWhy is CEAT Ltd ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 15.55% and Operating profit at 15.97%
2
With a growth in Net Profit of 58.16%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 3 consecutive quarters
- NET SALES(Q) Highest at Rs 4,218.89 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 7.00 times
- PBDIT(Q) Highest at Rs 592.73 cr.
3
With ROCE of 16.3, it has a Attractive valuation with a 2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.69%, its profits have risen by 51.3% ; the PEG ratio of the company is 0.4
4
High Institutional Holdings at 37.44%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 5.38% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.69% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to CEAT should be less than 10%
- Overall Portfolio exposure to Tyres & Rubber Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CEAT for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
CEAT
-8.69%
-0.23
37.32%
Sensex
-3.74%
-0.28
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.55%
EBIT Growth (5y)
15.97%
EBIT to Interest (avg)
2.94
Debt to EBITDA (avg)
2.00
Net Debt to Equity (avg)
0.64
Sales to Capital Employed (avg)
1.90
Tax Ratio
29.04%
Dividend Payout Ratio
2.57%
Pledged Shares
0
Institutional Holding
37.44%
ROCE (avg)
12.55%
ROE (avg)
10.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
23
Price to Book Value
2.67
EV to EBIT
12.37
EV to EBITDA
8.16
EV to Capital Employed
2.02
EV to Sales
1.07
PEG Ratio
0.35
Dividend Yield
0.90%
ROCE (Latest)
16.31%
ROE (Latest)
14.81%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend26What is working for the Company
NET SALES(Q)
Highest at Rs 4,218.89 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 7.00 times
PBT LESS OI(Q)
At Rs 324.02 cr has Grown at 56.4% (vs previous 4Q average
PAT(Q)
At Rs 250.85 cr has Grown at 61.1% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 592.73 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 14.05%
EPS(Q)
Highest at Rs 60.28
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for CEAT
Net Sales - Quarterly
Highest at Rs 4,218.89 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 7.00 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 324.02 cr has Grown at 56.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 207.12 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 250.85 cr has Grown at 61.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 155.72 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 592.73 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 14.05%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 324.02 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 250.85 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 60.28
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for CEAT
Non Operating Income - Quarterly
Highest at Rs 25.74 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
