CEAT Limited (CEATLTD) AI Stock Analysis

• Market Cap: ₹123.55B
• Dividend Yield: 0.98%
• Average Volume (3M): 12.71K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.08
• Revenue Growth: 11.09%
• EPS Growth: -33.93%
• Country: IN
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 28.50
• Shares Outstanding: 40,450,092
• 10 Day Avg. Volume: 5,472
• 30 Day Avg. Volume: 12,713
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹3,894.00
• Price Target Upside: 27.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: ₹3,550.00 ▲(16.23% Upside)

CEAT Limited's overall stock score reflects strong financial performance but is tempered by bearish technical indicators and valuation concerns. The solid financial metrics are a positive, but market sentiment is currently negative, and the stock appears overvalued.

CEAT Limited Business Overview & Revenue Model

Company Description

CEAT Limited (CEATLTD) is a leading Indian tire manufacturer that operates in the automotive sector. It provides a wide range of tire products for various vehicle categories including two-wheelers, passenger cars, trucks, buses, and off-the-road vehicles. With a strong focus on innovation and sustainability, CEAT is known for delivering high-quality and durable tires that enhance vehicle performance and safety.

How the Company Makes Money

CEAT Limited generates revenue primarily through the sale of tires across different segments, including two-wheelers, passenger vehicles, commercial vehicles, and specialty tires for industrial and agricultural machinery. The company has a well-established distribution network that spans across domestic and international markets, driving significant sales. In addition to direct sales, CEAT collaborates with original equipment manufacturers (OEMs) to supply tires for new vehicles, which forms an essential part of its revenue stream. The company's focus on research and development allows it to innovate and introduce advanced tire technologies, which helps in capturing market share and maintaining competitive pricing. CEAT also benefits from strategic partnerships and alliances that enhance its market reach and operational efficiency.

CEAT Limited Financial Statement Overview

Summary

CEAT Limited demonstrates strong financial health with impressive revenue growth and improved profitability margins. The stable leverage position and efficient use of equity are positives, though cash flow management requires attention due to a decrease in free cash flow.

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 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	100.25B	132.18B	112.06B	91.97B	76.10B	66.83B
Gross Profit	37.33B	49.86B	36.70B	30.21B	32.71B	27.06B
EBITDA	10.21B	14.62B	7.04B	9.91B	9.91B	7.17B
Net Income	3.18B	4.73B	1.86B	712.00M	4.32B	2.31B
Balance Sheet
Total Assets	112.12B	112.12B	96.28B	91.60B	81.32B	73.53B
Cash, Cash Equivalents and Short-Term Investments	532.40M	532.40M	689.90M	326.40M	371.70M	282.70M
Total Debt	21.36B	21.36B	22.95B	22.29B	15.33B	20.35B
Total Liabilities	68.36B	68.36B	61.71B	58.64B	47.92B	44.21B
Stockholders Equity	43.69B	43.69B	34.40B	32.73B	33.16B	29.08B
Cash Flow
Free Cash Flow	0.00	1.49B	3.26B	-3.40B	7.18B	-1.62B
Operating Cash Flow	0.00	10.92B	12.05B	6.19B	13.58B	9.56B
Investing Cash Flow	0.00	-9.22B	-8.49B	-9.44B	-6.18B	-10.76B
Financing Cash Flow	0.00	-1.77B	-3.20B	3.13B	-7.31B	790.20M

CEAT Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3054.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3054.35 is below the 20-day moving average (MA) of 3191.06, below the 50-day MA of 3443.07, and below the 200-day MA of 3153.10, indicating a bearish trend. The MACD of -86.88 indicates Negative momentum. The RSI at 34.01 is Neutral, neither overbought nor oversold. The STOCH value of 37.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CEATLTD.

CEAT Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APOLLOTYRE	66 Neutral	₹289.76B	35.53		1.10%	3.46%	-48.85%
MRF	66 Neutral	₹603.97B	34.60		0.16%	10.44%	-12.83%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
EXIDEIND	61 Neutral	₹337.36B	40.11		0.50%	3.17%	-3.03%
CEATLTD	60 Neutral	₹123.55B	30.16		0.98%	11.09%	-33.93%
TVSSRICHAK	60 Neutral	₹21.86B	82.26		1.65%	8.87%	-71.38%
JKTYRE	58 Neutral	₹87.88B	19.57		0.94%	―	-50.24%

CEAT Limited Corporate Events

CEAT Limited Issues Confirmation Letters for Duplicate Share Certificates

CEAT Limited has announced the issuance of a letter of confirmation in lieu of duplicate share certificates, as part of compliance with SEBI regulations. This step, facilitated by NSDL Database Management Limited, is crucial for maintaining accurate shareholder records and ensuring transparency in the company’s shareholding structure.

CEAT Limited Announces 66th AGM and Online Access to Annual Report

CEAT Limited has announced that it will hold its 66th Annual General Meeting on August 21, 2025, via video conferencing. The company has issued letters to shareholders whose email addresses are not registered, providing a link to access the Integrated Annual Report for FY 2024-25. This move ensures compliance with SEBI regulations and facilitates shareholder engagement by making the report accessible online. The announcement highlights CEAT’s commitment to transparency and efficient communication with its stakeholders.

CEAT Limited’s Credit Ratings Affirmed with Positive Outlook

CEAT Limited announced that India Ratings and Research has affirmed its credit ratings for various financial instruments. The ratings reflect a stable and positive outlook, indicating confidence in CEAT’s financial stability and growth potential, which may positively impact its market positioning and stakeholder confidence.