Motilal Oswal's research report on CEAT
CEAT’s 3QFY24 results were in line on an absolute basis, while EBITDA margin came in at 14.1% (est. 14.6%). It declined 80bp QoQ due to a slight increase in RM cost. While commodity prices have already bottomed out, volume growth and better product mix will keep EBITDA margin range bound.
Outlook
While we maintain FY24 EPS, we revise FY25 EPS upwards by 4% to factor in for demand recovery in 2Ws and exports, coupled with lower depreciation. We reiterate our BUY rating on the stock with a TP of INR3,250 (based on ~15x Dec’25E EPS).
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