Buy CEAT; target of Rs 4700: ICICI Securities

ICICI Securities is bullish on CEAT has recommended buy rating on the stock with a target price of Rs 4700 in its research report dated January 20, 2026.

Broker Research

January 23, 2026 / 14:37 IST

Buy

ICICI Securities's research report on CEAT

Healthy traction in replacement business, strong underlying OE volumes and recovery in exports drove double-digit revenue growth for CEAT in Q3FY26 (+3% I-Sec est.). Margin performance was also ahead of our estimate (by 60bps), supported by higher operating leverage. Near-term demand outlook remains strong across segments. With demand recovery in key international markets, exports outlook also remains positive. CAMSO may drag margin/EPS performance in the near-term. Nonetheless, CEAT’s medium-to-long term prospects remain healthy and we expect it to be EPS accretive post FY28. While increase in RM basket remains a key near-term monitorable, recent GST-led price cut has provided a cushion for price hikes.

Outlook

Maintain BUY with TP of INR 4,700 (vs INR 4,750); based on 17x FY28E EPS.

For all recommendations report, click here