Motilal Oswal 's research report on CEAT
CEAT’s beat in the performance for 4QFY20 was completely driven by favorable RM cost. The trend in spot prices in key commodities indicates further material benefits would accrue from 2QFY21. This, coupled with the tax benefit on accumulated loss in the OTR business, offset the impact of weak demand on PAT. Hence, we largely maintain our estimate, which implies ~2%/12%/15% revenue/EBITDA/EPS CAGR over FY20–22E. Maintain Buy.
Outlook
Valuations at 15.8x/10.8x FY21/22E consol. EPS does not fully capture the benefit of substantial capacity addition. Maintain Buy with TP of ~INR936.
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.
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!
