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CEAT Limited
(CEATLTD)
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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)
Market Cap
₹143.09B
Dividend Yield0.98%
Average Volume (3M)5.34K
Price to Earnings (P/E)24.6
Beta (1Y)1.24
Revenue Growth21.48%
EPS Growth36.97%
CountryIN
Employees10,000
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)146.05
Shares Outstanding40,450,092
10 Day Avg. Volume5,948
30 Day Avg. Volume5,340
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)2.60
Price to Sales (P/S)0.84
P/FCF Ratio37.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)138.79
Revenue Forecast (FY)₹184.79B
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
Income Statement
67
Positive
Balance Sheet
64
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.67B | 156.78B | 132.18B | 119.43B | 113.15B | 93.63B |
| Gross Profit | 44.69B | 44.07B | 48.76B | 49.08B | 38.33B | 32.52B |
| EBITDA | 16.38B | 20.32B | 13.52B | 15.45B | 8.56B | 6.04B |
| Net Income | 5.90B | 6.98B | 4.73B | 6.43B | 1.86B | 712.00M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 139.02B | 112.12B | 99.94B | 96.28B | 91.60B |
| Cash, Cash Equivalents and Short-Term Investments | 433.00M | 2.92B | 496.40M | 565.90M | 689.90M | 326.40M |
| Total Debt | 0.00 | 32.72B | 21.36B | 17.91B | 22.95B | 22.29B |
| Total Liabilities | -50.54B | 88.48B | 68.36B | 59.42B | 61.71B | 58.64B |
| Stockholders Equity | 50.54B | 50.46B | 43.69B | 40.43B | 34.40B | 32.73B |
Cash Flow | ||||||
| Free Cash Flow | 4.55B | 3.54B | 1.49B | 8.52B | 3.26B | -3.40B |
| Operating Cash Flow | 8.74B | 15.01B | 10.92B | 17.19B | 12.05B | 6.19B |
| Investing Cash Flow | -15.13B | -22.97B | -9.22B | -8.54B | -8.49B | -9.44B |
| Financing Cash Flow | 6.67B | 7.88B | -1.77B | -8.71B | -3.20B | 3.13B |
CEAT Limited Technical Analysis
Positive
3325.45
Price Trends
3558.45
Positive
3451.44
Positive
3603.72
Negative
Market Momentum
26.35
Positive
49.52
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹271.22B | 15.92 | ― | 0.98% | 11.23% | 105.46% | |
67 Neutral | ₹457.59B | 32.71 | ― | 0.80% | 9.78% | -3.28% | |
67 Neutral | ₹566.45B | 23.53 | ― | 0.15% | 11.37% | 34.26% | |
63 Neutral | ₹143.09B | 24.57 | ― | 0.90% | 21.48% | 36.97% | |
58 Neutral | ₹108.11B | 16.13 | ― | 0.77% | 9.93% | 40.80% | |
57 Neutral | ₹36.93B | 40.80 | ― | 0.40% | 18.56% | 244.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:CEATLTD
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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.