Motilal Oswal's research report on CEAT
CEAT’s Q1FY26 earnings stood at INR1.15b, below our estimate of INR1.5b, impacted by lower-than-expected margins, higher interest costs, and lower other income. The company, however, continues to outperform in its key segments. Margins are expected to improve from Q2 as the benefits of softening input costs are likely to be visible. CEAT’s focus on strategic areas such as PVs/2Ws/OHT/exports (to support margins), coupled with prudent capex plans (to benefit FCF), is expected to drive improved returns in the long run. We reiterate our BUY rating on the stock with a TP of INR4,393 (based on ~18x June27E EPS).
Outlook
CEAT’s focus on strategic areas such as PVs/2Ws/OHT/exports (to support margins), coupled with prudent capex plans (to benefit FCF), is expected to drive improved returns in the long run. We reiterate our BUY rating on the stock with a TP of INR4,393 (based on ~18x June27E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.bus
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
