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CEAT Limited (IN:CEATLTD)
:CEATLTD
India Market
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CEAT Limited (CEATLTD) AI Stock Analysis

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IN:CEATLTD

CEAT Limited

(CEATLTD)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
₹3,781.00
▲(13.70% Upside)
Action:Reiterated
Date:07/18/26
The score is driven primarily by improving fundamentals (revenue growth and earnings recovery) but held back by margin volatility, rising debt, and inconsistent free cash flow. Technicals are moderately positive but capped by the stock trading below its 20- and 200-day averages, and valuation appears only average given the company’s variability and modest dividend yield.
Positive Factors
Consistent revenue growth and ROE recovery
Revenue has expanded across 2021–2026, with multi‑year top‑line momentum and an improved profitability profile versus the 2022 trough. Sustained revenue growth and recovering ROE (~13.8% in 2026 per the balance sheet note) indicate structural demand and better capital returns.
Negative Factors
Margin volatility and cost pressure
Gross and net margins have swung materially, reflecting sensitivity to raw material and pricing cycles. Structural input‑cost exposure (rubber etc.) combined with competitive market pricing suggests profitability can be unstable and vulnerable to commodity or mix shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth and ROE recovery
Revenue has expanded across 2021–2026, with multi‑year top‑line momentum and an improved profitability profile versus the 2022 trough. Sustained revenue growth and recovering ROE (~13.8% in 2026 per the balance sheet note) indicate structural demand and better capital returns.
Read all positive factors

CEAT Limited (CEATLTD) vs. iShares MSCI India ETF (INDA)

CEAT Limited Business Overview & Revenue Model

Company Description
CEAT Limited is a manufacturer and global distributor of automotive tires, inner tubes, and protective flaps, serving both the Indian market and a vast international clientele. The company's comprehensive product portfolio features rubber tires an...
How the Company Makes Money
CEAT makes money primarily by manufacturing and selling tires. Its revenue is largely generated from (1) domestic and export sales of tires across major vehicle segments (such as two-wheelers, passenger cars, and commercial vehicles) and (2) sales...

CEAT Limited Financial Statement Overview

Summary
Solid multi-year revenue growth and improved earnings/ROE versus the 2022 trough support a mid-60s score. Offsetting this are margin volatility (gross margin compression in 2025), a notable jump in debt in 2026, and uneven free-cash-flow conversion including a negative FCF year and a decline in 2026.
Income Statement
67
Positive
Balance Sheet
64
Positive
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue164.67B156.78B132.18B119.43B113.15B93.63B
Gross Profit44.69B44.07B48.76B49.08B38.33B32.52B
EBITDA16.38B20.32B13.52B15.45B8.56B6.04B
Net Income5.90B6.98B4.73B6.43B1.86B712.00M
Balance Sheet
Total Assets0.00139.02B112.12B99.94B96.28B91.60B
Cash, Cash Equivalents and Short-Term Investments433.00M2.92B496.40M565.90M689.90M326.40M
Total Debt0.0032.72B21.36B17.91B22.95B22.29B
Total Liabilities-50.54B88.48B68.36B59.42B61.71B58.64B
Stockholders Equity50.54B50.46B43.69B40.43B34.40B32.73B
Cash Flow
Free Cash Flow4.55B3.54B1.49B8.52B3.26B-3.40B
Operating Cash Flow8.74B15.01B10.92B17.19B12.05B6.19B
Investing Cash Flow-15.13B-22.97B-9.22B-8.54B-8.49B-9.44B
Financing Cash Flow6.67B7.88B-1.77B-8.71B-3.20B3.13B

CEAT Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3325.45
Price Trends
50DMA
3558.45
Positive
100DMA
3451.44
Positive
200DMA
3603.72
Negative
Market Momentum
MACD
26.35
Positive
RSI
49.52
Neutral
STOCH
9.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CEATLTD, the sentiment is Positive. The current price of 3325.45 is below the 20-day moving average (MA) of 3577.54, below the 50-day MA of 3558.45, and below the 200-day MA of 3603.72, indicating a neutral trend. The MACD of 26.35 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 9.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CEATLTD.

CEAT Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₹271.22B15.920.98%11.23%105.46%
67
Neutral
₹457.59B32.710.80%9.78%-3.28%
67
Neutral
₹566.45B23.530.15%11.37%34.26%
63
Neutral
₹143.09B24.570.90%21.48%36.97%
58
Neutral
₹108.11B16.130.77%9.93%40.80%
57
Neutral
₹36.93B40.800.40%18.56%244.53%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CEATLTD
CEAT Limited
3,585.40
436.35
13.86%
IN:APOLLOTYRE
Apollo Tyres Limited.
429.55
-29.31
-6.39%
IN:BALKRISIND
Balkrishna Industries Limited
2,376.75
-19.76
-0.82%
IN:JKTYRE
JK Tyre & Industries Limited
373.80
47.78
14.66%
IN:MRF
MRF Limited
133,965.20
-13,921.55
-9.41%
IN:TVSSRICHAK
TVS Srichakra Limited
4,922.80
2,023.23
69.78%

CEAT Limited Corporate Events

India Ratings Affirms CEAT Credit Scores as Debenture Size Trimmed
Jul 3, 2026
India Ratings and Research has affirmed CEAT Limited’s credit profile, maintaining an IND AA/Positive rating on its non-convertible debentures while noting a reduction in the debenture programme size from Rs.250 crore to Rs.150 crore. The ag...
CEAT Sees GST Demand Cut in Tamil Nadu, Expects No Material Impact
Jun 4, 2026
CEAT Limited has disclosed that a rectified order under the Goods and Services Tax Act has been issued by the Tamil Nadu State Tax Officer for FY 2019–20, revising an earlier GST demand related to alleged ineligible input tax credit. The con...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2026