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Ceat Ltd Stock Analysis

Mid Cap
Evaluated by 2594 users | BSE: 500878 | NSE: CEATLTD |
Tyres & Allied

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...

Analysis of Financial Track Record

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
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 7.75%14.12%20.21%18.18%21.06%15.28%11.51%9.76%8.09%12.28%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,4764,8815,3555,5415,4555,7026,2136,8316,7487,5738,354
Y-o-Y Gr. Rt.-9.1%9.7%3.5%-1.6%4.5%9%10%-1.2%12.2%-
Adjusted EPS (Rs.) 1.1636.7773.1176.2111.8892.373.2975.1660.48109.63113.59
Y-o-Y Gr. Rt.-3069.8%98.8%4.2%46.8%-17.5%-20.6%2.6%-19.5%81.3%-
Book Value per Share (Rs.) 190.61216.98268.97395.19481.84570.12629.62680.11682.47782.38787.31
Adjusted Net Profit 4126263308453373296304245443459
Net Op. Cash Flow (Rs. Cr.) 6.85571557057193447445339681,351-
Debt to Cash Flow from Ops 189.031.827.41.080.912.250.862.371.971.03-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ceat Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6%6.8%6.8%12.2%
Adjusted EPS 65.8%-0.4%14.4%81.3%
Book Value per Share 1710.27.514.6
Share Price 31.4% 2.1% 2.2% 45.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 0.6117.9530.6824.0325.5117.5512.2211.488.8814.9714.47
Operating Profit Margin (%) 5.528.711.8811.8314.7311.7910.19.4810.6812.7112.41
Net Profit Margin (%) 0.092.584.915.568.36.554.774.453.635.865.5
Debt to Equity 1.961.361.190.480.330.340.250.460.690.44-
Working Capital Days 97959593889310210310699-
Cash Conversion Cycle 5245383224283230200-
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Entity Percentage Holding
Promoters 46.82%
Institutions 37.67%
Non-Institutions 15.51%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworkds4me indicates that Ceat Ltd is a average quality company.

Ceat Ltd's earnings have declined by -0.4%, whereas share price has appreciated 2.1% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Ceat Ltd share price has appreciated 32.7% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Ceat Ltd is an average long term investment. However, you need to ensure you buy at a right price to earn good returns.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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