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CEAT Limited
(CEATLTD)
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Rating:60Neutral
Price Target:
₹4,056.00
▲(4.22% Upside)
Action:Reiterated
Date:05/01/26
The score is primarily supported by improving financial performance and steady revenue growth, but is held back by inconsistent free-cash-flow generation, rising leverage in 2026, and a weak technical trend with the stock trading below key moving averages. Valuation is mid-range with a low dividend yield.
Positive Factors
Consistent revenue growth
Multi-year top-line expansion (2021–2026) reflects durable demand across product lines and growing scale. Consistent revenue growth supports operational leverage, provides pricing flexibility over time, and underpins medium-term capacity utilization and investment planning.
Negative Factors
Margin volatility and cost pressure
Significant swings in gross and net margins indicate sensitivity to raw material costs and pricing dynamics. Persistent margin pressure reduces earnings predictability, making profitability vulnerable during commodity cycles and limiting sustainable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Multi-year top-line expansion (2021–2026) reflects durable demand across product lines and growing scale. Consistent revenue growth supports operational leverage, provides pricing flexibility over time, and underpins medium-term capacity utilization and investment planning.
Read all positive factors
CEAT Limited (CEATLTD) vs. iShares MSCI India ETF (INDA)
Market Cap
₹150.49B
Dividend Yield0.77%
Average Volume (3M)5.34K
Price to Earnings (P/E)21.9
Beta (1Y)1.17
Revenue Growth18.61%
EPS Growth47.83%
CountryIN
Employees10,000
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)172.78
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 Target
₹4,228.00Price Target Upside8.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)169.79
Revenue Forecast (FY)₹180.51B
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 156.78B | 132.18B | 119.43B | 113.15B | 93.63B |
| Gross Profit | 44.07B | 48.76B | 49.08B | 38.33B | 32.52B |
| EBITDA | 20.32B | 13.52B | 15.45B | 8.56B | 6.04B |
| Net Income | 6.98B | 4.73B | 6.43B | 1.86B | 712.00M |
Balance Sheet | |||||
| Total Assets | 139.02B | 112.12B | 99.94B | 96.28B | 91.60B |
| Cash, Cash Equivalents and Short-Term Investments | 2.92B | 496.40M | 565.90M | 689.90M | 326.40M |
| Total Debt | 32.72B | 21.36B | 17.91B | 22.95B | 22.29B |
| Total Liabilities | 88.48B | 68.36B | 59.42B | 61.71B | 58.64B |
| Stockholders Equity | 50.46B | 43.69B | 40.43B | 34.40B | 32.73B |
Cash Flow | |||||
| Free Cash Flow | 3.54B | 1.49B | 8.52B | 3.26B | -3.40B |
| Operating Cash Flow | 15.01B | 10.92B | 17.19B | 12.05B | 6.19B |
| Investing Cash Flow | -22.97B | -9.22B | -8.54B | -8.49B | -9.44B |
| Financing Cash Flow | 7.88B | -1.77B | -8.71B | -3.20B | 3.13B |
CEAT Limited Technical Analysis
Positive
3891.85
Price Trends
3398.81
Positive
3487.78
Positive
3647.68
Positive
Market Momentum
134.55
Negative
56.54
Neutral
59.63
Neutral
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 3891.85 is above the 20-day moving average (MA) of 3642.20, above the 50-day MA of 3398.81, and above the 200-day MA of 3647.68, indicating a bullish trend. The MACD of 134.55 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 59.63 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹356.28B | 41.75 | ― | 0.54% | 4.39% | 7.44% | |
63 Neutral | ₹555.85B | 23.07 | ― | 0.15% | 10.64% | 29.47% | |
62 Neutral | ₹270.08B | 19.72 | ― | 0.98% | 8.98% | 22.39% | |
60 Neutral | ₹150.49B | 21.93 | ― | 0.77% | 18.61% | 47.83% | |
58 Neutral | ₹115.83B | 14.90 | ― | 0.59% | 11.12% | 49.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹31.74B | 45.27 | ― | 0.40% | 11.97% | 245.60% |
* General Sector Average
IN:CEATLTD
CEAT Limited
3,794.80
-43.12
-1.12%
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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...
CEAT Board Clears FY26 Results, Steep Dividend and Future Credit Line
Apr 28, 2026
CEAT Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, with the statutory auditor issuing an unmodified opinion. The board has also recommended a dividend of...
CEAT clears FY26 results, hefty dividend and governance code changes
Apr 28, 2026
CEAT Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with the statutory auditors issuing unmodified opinions. The board has also recommended a dividend of R...
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.