ScoreWhy is CEAT Ltd ?
1
Positive results in Dec 25
- NET SALES(Q) Highest at Rs 4,157.05 cr
- PBDIT(Q) Highest at Rs 563.35 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 13.55%
2
With ROCE of 13.2, it has a Fair valuation with a 2.3 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 22.04%, its profits have risen by 20.9% ; the PEG ratio of the company is 1.1
3
High Institutional Holdings at 37.4%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Returns over the last 3 years
- Along with generating 22.04% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
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, High Return
Absolute
Risk Adjusted
Volatility
CEAT
22.04%
0.60
36.96%
Sensex
-3.52%
-0.27
13.03%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.64%
EBIT Growth (5y)
14.49%
EBIT to Interest (avg)
2.88
Debt to EBITDA (avg)
1.99
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
1.86
Tax Ratio
28.43%
Dividend Payout Ratio
2.57%
Pledged Shares
0
Institutional Holding
37.40%
ROCE (avg)
12.25%
ROE (avg)
10.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
23
Price to Book Value
3.14
EV to EBIT
14.76
EV to EBITDA
9.43
EV to Capital Employed
2.28
EV to Sales
1.17
PEG Ratio
1.10
Dividend Yield
0.85%
ROCE (Latest)
13.16%
ROE (Latest)
11.47%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
NET SALES(Q)
Highest at Rs 4,157.05 cr
PBDIT(Q)
Highest at Rs 563.35 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.55%
PBT LESS OI(Q)
Highest at Rs 270.25 cr.
PAT(Q)
Highest at Rs 195.78 cr.
-10What is not working for the Company
ROCE(HY)
Lowest at 13.24%
DEBT-EQUITY RATIO(HY)
Highest at 0.68 times
INTEREST(Q)
Highest at Rs 104.96 cr
Loading Valuation Snapshot...
Here's what is working for CEAT
Net Sales - Quarterly
Highest at Rs 4,157.05 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 270.25 cr has Grown at 58.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 170.64 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 195.78 cr has Grown at 49.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 131.05 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 563.35 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.55%
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 270.25 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 195.78 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for CEAT
Interest - Quarterly
Highest at Rs 104.96 cr
in the last five quarters and Increased by 20.70 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.68 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 6.05 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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