Buy Ceat around Rs 105, says Baliga

Ambareesh Baliga, Market Expert advice traders to buy Ceat around Rs 105.

Baliga told CNBC-TV18, “For those who have missed out last time tyre companies, I think it is time for them to buy this at lower levels because I was also a bit surprised with the results, but clearly I think it is exceptional items, which has brought it down because if you look at the rubber prices Carbon Black prices have come down, so margins should have increased. But whatever it is – like a replacement market – that theory is still on. I think we will see replacement market actually booming over the next one and half two years. So, since it has already come down if it comes to levels of Rs 105, I think one should look at buying it at those levels."
Ceat is trailing 12-month (TTM) EPS was at Rs 6.51 per share. (Jun, 2012). The stock's price-to-earnings (P/E) ratio was 16.89. The latest book value of the company is Rs 190.61 per share. At current value, the price-to-book value of the company was 0.58. The dividend yield of the company was 0.91%.