CEAT Limited (CEATLTD) AI Stock Analysis

• Market Cap: ₹150.52B
• Dividend Yield: 0.81%
• Average Volume (3M): 5.34K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 1.15
• Revenue Growth: 12.61%
• EPS Growth: -12.56%
• Country: IN
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 46.00
• Shares Outstanding: 40,450,092
• 10 Day Avg. Volume: 5,948
• 30 Day Avg. Volume: 5,340
• PEG Ratio: -0.93
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 78.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹4,173.00 ▲(12.15% Upside)

CEAT Limited's strong financial performance, characterized by revenue growth and improved profitability, is a significant positive factor. However, technical indicators suggest short-term bearish momentum, and the stock's high valuation limits its attractiveness. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates CEAT's expanding market presence and effective sales strategies, supporting long-term business sustainability.

Profitability Margins

Improved profitability margins reflect CEAT's effective cost management and operational efficiency, enhancing its competitive position in the market.

Stable Leverage

A stable leverage position indicates prudent financial management, reducing risk and enhancing CEAT's financial stability and investment appeal.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow suggests potential cash management challenges, which could impact CEAT's ability to invest in growth opportunities and manage debt.

EPS Decline

A decline in EPS growth indicates potential challenges in profitability, which could affect investor confidence and limit future earnings potential.

Cash Flow Management

Challenges in cash flow management may hinder CEAT's ability to fund operations and growth, impacting its long-term financial health and operational flexibility.

CEAT Limited Business Overview & Revenue Model

Company Description

CEAT Limited is a leading tire manufacturer in India, specializing in the production of a wide range of tires for various vehicles, including two-wheelers, passenger cars, commercial vehicles, and industrial applications. With a strong presence in both domestic and international markets, CEAT focuses on delivering high-quality products that cater to the diverse needs of its customers. The company is known for its innovative tire technology and commitment to sustainability, making it a prominent player in the automotive sector.

How the Company Makes Money

CEAT Limited generates revenue primarily through the sale of tires across various segments. Its key revenue streams include the production and distribution of tires for two-wheelers, passenger cars, and commercial vehicles. The company also earns income from its industrial tire division and special applications, such as off-road and agricultural tires. Additionally, CEAT has forged significant partnerships with automobile manufacturers, which enhances its market reach and increases sales volume. The company also benefits from after-sales services and tire maintenance solutions, further contributing to its earnings. Factors such as market demand, pricing strategies, and advancements in tire technology play a crucial role in CEAT's revenue generation.

CEAT Limited Financial Statement Overview

Summary

CEAT Limited exhibits strong financial health with impressive revenue growth and improved profitability margins. The balance sheet reflects a stable leverage position, and the company efficiently utilizes equity to generate returns. Cash flow management could be improved, as indicated by the decline in free cash flow, but strong operating cash flow provides a buffer.

Income Statement

CEAT Limited displays strong revenue growth with a 12.16% increase from 2024 to 2025. The gross profit margin for 2025 is 37.73%, indicating effective cost management. There is a significant improvement in net profit margin, rising from 1.58% in 2024 to 3.57% in 2025, reflecting enhanced profitability. The EBITDA margin also improved to 11.06% in 2025, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio in 2025 is 0.49, reflecting a stable leverage position. The return on equity (ROE) improved to 10.82% in 2025, indicating efficient use of equity to generate profits. The equity ratio stands at 38.96%, showing a balanced capital structure, though there is room for improvement in reducing liabilities.

Cash Flow

CEAT Limited's free cash flow decreased significantly from 2024 to 2025, highlighting potential cash flow management challenges. However, the operating cash flow to net income ratio in 2025 is 2.31, demonstrating strong cash generation relative to net income, which is a positive signal for operational health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	135.54B	132.18B	119.43B	113.15B	93.63B	76.10B
Gross Profit	49.21B	48.76B	49.08B	38.33B	32.52B	32.71B
EBITDA	13.83B	13.52B	15.45B	8.56B	6.04B	9.15B
Net Income	4.31B	4.73B	6.43B	1.86B	712.00M	4.32B
Balance Sheet
Total Assets	0.00	112.12B	99.94B	96.28B	91.60B	81.32B
Cash, Cash Equivalents and Short-Term Investments	532.40M	496.40M	565.90M	689.90M	326.40M	371.70M
Total Debt	0.00	21.36B	17.91B	22.95B	22.29B	15.33B
Total Liabilities	-43.76B	68.36B	59.42B	61.71B	58.64B	47.92B
Stockholders Equity	43.76B	43.69B	40.43B	34.40B	32.73B	33.16B
Cash Flow
Free Cash Flow	0.00	1.49B	8.52B	3.26B	-3.40B	7.18B
Operating Cash Flow	0.00	10.92B	17.19B	12.05B	6.19B	13.58B
Investing Cash Flow	0.00	-9.22B	-8.54B	-8.49B	-9.44B	-6.18B
Financing Cash Flow	0.00	-1.77B	-8.71B	-3.20B	3.13B	-7.31B

CEAT Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3721.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CEATLTD, the sentiment is Neutral. The current price of 3721.05 is below the 20-day moving average (MA) of 3837.37, below the 50-day MA of 3890.73, and above the 200-day MA of 3453.34, indicating a neutral trend. The MACD of -38.48 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CEATLTD.

CEAT Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEATLTD	69 Neutral	₹150.52B	30.41	―	0.81%	12.61%	-12.56%
JKTYRE	69 Neutral	₹127.36B	23.79	―	0.64%	4.55%	-30.30%
MRF	68 Neutral	₹643.07B	34.69	―	0.15%	9.56%	-4.82%
TVSSRICHAK	66 Neutral	₹31.60B	114.44	―	0.41%	8.03%	-57.44%
APOLLOTYRE	64 Neutral	₹317.01B	39.99	―	1.01%	4.36%	-45.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EXIDEIND	58 Neutral	₹309.06B	39.19	―	0.54%	2.19%	-5.70%

CEAT Limited Corporate Events

CEAT Limited Releases September 2025 Share Transfer Report

CEAT Limited has released its monthly report on the special window for re-lodgement of physical share transfer requests for September 2025. The report, in compliance with a SEBI circular, indicates that one request was processed and approved, with an average processing time of eight days. This initiative reflects CEAT’s commitment to maintaining transparency and efficiency in its share transfer processes.

CEAT Limited Issues Duplicate Share Certificates in Compliance with SEBI Regulations

CEAT Limited has announced the issuance of duplicate share certificates, as confirmed by NSDL Database Management Limited, the company’s Registrar and Transfer Agent. This move is in compliance with SEBI regulations and involves issuing letters of confirmation to securities holders or claimants, ensuring the integrity and accuracy of shareholder records.

CEAT Limited Releases Q2 FY26 Earnings Call Recording

CEAT Limited has announced that the audio recording of its Q2 FY26 earnings call, held on October 17, 2025, is now available on its website. This move enhances transparency and provides stakeholders with insights into the company’s financial performance for the period ending September 30, 2025, potentially impacting investor confidence and market positioning.

CEAT Limited Announces Compliance Certification for Q3 2025

CEAT Limited has announced the issuance of a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ending September 30, 2025. This certificate, issued by NSDL Database Management Limited, confirms compliance with applicable regulations, reflecting CEAT’s commitment to regulatory adherence and transparency, which is crucial for maintaining stakeholder trust and ensuring smooth operations.