Ceat Ltd Stock Analysis

BSE: 500878 | NSE: CEATLTD | Tyres & Allied | Mid Cap

BSE Share Price Aug 19, 18:03
1369.35 -3.75 (-0.27%)

DeciZen - Make an Informed Decision on CEAT

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

CEAT Price Chart

P/E Ratio (SA) :
150.40
Market Cap :
5,554.2 Cr.
52-wk low :
890
52-wk high :
1,420
Bole Toh?

1. Is Ceat Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Ceat Ltd is a average quality company.

2. Is Ceat Ltd undervalued or overvalued?

The key valuation ratios of Ceat Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Ceat Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Ceat Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of CEAT:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ceat Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 14.1%20.2%18.2%21.1%15.3%11.5%9.8%8.1%12.3%4.4%-
Value Creation Index 0.00.40.30.50.1-0.2-0.3-0.4-0.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,8815,3555,5415,4555,7026,2136,8316,7487,5739,31310,218
YoY Gr. Rt. %-9.7%3.5%-1.6%4.5%9%10%-1.2%12.2%23%-
Adj EPS 36.873.176.2111.992.373.375.260.5109.617.49.1
YoY Gr. Rt. %-98.8%4.2%46.8%-17.5%-20.6%2.6%-19.5%81.3%-84.2%-
BVPS (₹) 217269395.2481.8570.1629.6680.1682.5782.4778.8779.4
Adj Net Profit 12626330845337329630424544370.337
Cash Flow from Ops. 5571557057193447445339681,351632-
Debt/CF from Ops. 1.87.41.10.92.30.92.4213.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.4%10.3%10.9%23%
Adj EPS -8%-28.4%-38.6%-84.2%
BVPS 15.36.44.6-0.5
Share Price 28.7% -4.3% 16.4% 3.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 1830.72425.517.612.211.58.9152.21.2
Op. Profit Mgn % 8.711.911.814.711.810.19.510.712.77.66.8
Net Profit Mgn % 2.64.95.68.36.64.84.53.65.90.80.4
Debt to Equity 1.41.20.50.30.30.30.50.70.40.7-
Working Cap Days 959593889310210310699970
Cash Conv. Cycle 4538322428323020350

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.88%

Debt to equity has declined versus last 3 years average to 0.66

Sales growth is good in last 4 quarters at 23.32%

Return on Equity has declined versus last 3 years average to 1.20%

Net Profit has been subdued in last 3 years -38.62%

Latest Financials - Ceat Ltd.

Standalone Consolidated
TTM EPS (₹) 9.1 14
TTM Sales (₹ Cr.) 10,218 10,275
BVPS (₹.) 779.4 809.7
Reserves (₹ Cr.) 3,112 3,235
P/BV 1.76 1.69
PE 150.40 98.03
From the Market
52 Week Low / High (₹) 890.00 / 1420.00
All Time Low / High (₹) 13.42 / 2030.00
Market Cap (₹ Cr.) 5,554
Equity (₹ Cr.) 40.5
Face Value (₹) 10
Industry PE 41.5

Management X-Ray of CEAT :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of CEAT

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Ceat Ltd

Founded in 1958, CEAT is one of India’s leading tyre brands and the flagship company of the RPG GROUP. Driven by the purpose of helping the world move safely and smartly, CEAT provides world-class products and services across many countries.

On the back of its innovative and agile methods and the drive to experiment, the company has become one of the largest Indian manufacturer of high-performance tyres for all vehicle segments. It seeks to sustain growth and deliver future-ready products and solutions that are safer, smarter and better in every respect.

The company builds best-in-class products through a culture of continuous innovation. The company’s tyres are durable and provide a secure grip, thereby ensuring the safety of its customers on the road, every day. The company is expanding its reach and distribution, introducing differentiated products and creating strong brand associations and social media presence.

Business area of the company

The Company is primarily engaged in business of manufacturing and sales of Automotive Tyres, Tubes & Flaps

Products

  • Passenger Car Tyres
  • Two Wheeler Tyres
  • Truck-Bus Radial Tyres
  • Off-Highway Tyres
  • Light Commercial Vehicle Tyres
  • Last Mile Tyres

Awards and recognitions

  • Bagged Campaign India Digital Crest Award 2019 for Leveraging Blockchain Technology to Reduce Ad Fraud.
  • Recognised amongst the top 30 manufacturing workplaces in India by Great Place to Work institute.
  • Top Export Award by All India Rubber Industries Association for Excellence in Export for FY 2018-19.
  • Won prestigious CII Award for the Most Innovative Business Practice in Customer Experience for e-Claim.
  • Bagged TISS Leapvault CLO Award for Learning & Development (L&D) Team of the Year and Best Diversity & Inclusion Training Programme.
  • Awarded Silver for the Bachao Tyre Exchange Offer campaign in exchange4media Prime Time Awards.
  • Awarded for Best Innovation in Employee Engagement and Best Use of Technology and Employee Engagement at Employee Engagement Summit and Awards 2020.
  • Awarded Gold in Best Use of AI/ML category and Silver in Best Use of Technology category at the ET DigiPlus Awards.
  • Awarded for Best Risk Management Framework and Systems in Auto Ancillary segment from CNBC-TV18.
  • Awarded as the Best Investor Relations Team for the second year in a row by IR Magazine and Forum.
  • Ranked among top 20 companies having innovative diversity policies and practices by DivHERsity Award 2020.
  • Ranked 35th amongst India’s 100 best companies to work for by the Great Place to Work Institute.

Milestones

  • 1958: CEAT was founded with its headquarter in Mumbai.
  • 1972: Research and Development Unit was set up at the company’s Bhandup works. Various type of testing machineries were installed in the laboratories.
  • 1982: The RPG group took over the control of CEAT Tyres in India.
  • 1990: The company was rechristened as CEAT.
  • 2008: CEAT logo was refreshed to align with its new vision.
  • 2009: Halol Plant operation (Primarily Passenger and Truck-Bus Radial Tyres) started.
  • 2012: Worldwide right of CEAT acquired from Pirelli.
  • 2016: Europe PCR Launch entered Italy and Spain with its newly developed.
  • 2016: Nagpur plant (Primarily two Wheeler plant) operation started.
  • 2017: 1st Indian company to receive Deming Award and received JD power Award for customer satisfaction.
  • 2017: Ambernath Plant (Primarily off Radial -Highway Tyres) operation started.
  • 2019: Expanded Truck-Bus Radial Tyres capacity at Halol Plant.
  • 2020: Chennai Plant (Primarily Passenger Radial plant) operation started.
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