Buy CEAT; target of Rs 4523: Motilal Oswal

Motilal Oswal is bullish on CEAT has recommended buy rating on the stock with a target price of Rs 4523 in its research report dated October 19, 2025.

Broker Research

October 23, 2025 / 10:19 IST

BUY

26 Aug, 2025 12:21

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Motilal Oswal's research report on CEAT

CEAT 2QFY26 earnings at INR1.85b came in above our estimate of INR1.4b, aided by higher-than-expected margin of 13.3% (est. 11.8%). The GST rate cut is expected to boost tyre demand in the replacement and OEM segments. Further, benign input costs would help maintain margins for the core business. While the recent Camso acquisition is expected to take time to be earnings accretive, we remain positive on the long-term benefits that this acquisition can deliver for the group. Hence, we reiterate our BUY rating on the stock with a TP of INR4,523 (based on ~20x Sep’27E EPS).

Outlook

While the recent Camso acquisition is expected to take time to be earnings accretive, we remain positive on the long-term benefits that this acquisition can deliver for the group. Hence, we reiterate our BUY rating on the stock with a TP of INR4,523 (based on ~20x Sep’27E EPS).

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