ICICI Securities research report on CEAT
We recently attended CEAT’s Investor Day to understand its medium-term growth strategy. Over the next two years, CEAT aims to gain leadership position in the PV replacement segment (currently, no. 3 player with 16% market share); it is also targeting ~200bps of market share expansion in the TBR segment. CAMSO’s integration is underway. Nearterm focus shall be on driving growth and synergies in the OHT business. While medium-term prospects remain strong (with respect to growth/margin), we remain watchful of US-tariff related uncertainties potentially impacting growth/margins in the near term.
Outlook
Valuations remain rich, post the stock's recent run-up (~25% in last two months). We downgrade to HOLD, from Add, with a TP of INR 3,625 (unchanged) based on 16x FY27E EPS.
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