Ceat Ltd - Stock Valuation and Financial Performance

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

CEAT Share Price

2,670.50 -3.80 -0.14%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on CEAT

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Ceat stock performance -

mw4me loader
P/E Ratio (SA):
16.21
Market Cap:
10,817.6 Cr.
52-wk low:
1,370
52-wk high:
2,997.3

Is Ceat Ltd an attractive stock to invest in?

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 Semi Strong which suggest that the price of Ceat Ltd is likely to Rise-somewhat 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 20.2%18.2%21.1%15.3%11.5%9.8%8.1%12.3%4.4%7.5%-
Value Creation
Index
0.40.30.50.1-0.2-0.3-0.4-0.1-0.7-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,3555,5415,4555,7026,2136,8316,7487,5739,31311,26311,776
Sales YoY Gr.-3.5%-1.6%4.5%9%10%-1.2%12.2%23%21%-
Adj EPS 73.176.2111.992.373.375.260.5109.617.456.7165
YoY Gr.-4.2%46.8%-17.5%-20.6%2.6%-19.5%81.3%-84.2%226.2%-
BVPS (₹) 269395.2481.8570.1629.6680.1682.5782.4778.8827.1947.9
Adj Net
Profit
26330845337329630424544370.3229667
Cash Flow from Ops. 1557057193447445339681,3516321,215-
Debt/CF from Ops. 7.41.10.92.30.92.4213.31.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.6%12.6%18.6%21%
Adj EPS -2.8%-5%-2.1%226.2%
BVPS13.3%5.6%6.6%6.2%
Share Price 19.8% 19.7% 20.8% 92.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
30.72425.517.612.211.58.9152.27.118.6
Op. Profit
Mgn %
11.911.814.711.810.19.510.712.77.68.713.9
Net Profit
Mgn %
4.95.68.36.64.84.53.65.90.825.7
Debt to
Equity
1.20.50.30.30.30.50.70.40.70.6-
Working Cap
Days
9593889310210310699978741
Cash Conv.
Cycle
38322428323020350-23

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.60%

Sales growth is growing at healthy rate in last 3 years 18.62%

Debt to equity has declined versus last 3 years average to 0.62

Net Profit has been subdued in last 3 years -2.13%

Sales growth is not so good in last 4 quarters at 7.38%

Latest Financials - Ceat Ltd.

Standalone Consolidated
TTM EPS (₹) 165 165.1
TTM Sales (₹ Cr.) 11,776 11,826
BVPS (₹.) 947.9 968.8
Reserves (₹ Cr.) 3,794 3,878
P/BV 2.82 2.76
PE 16.21 16.20
From the Market
52 Week Low / High (₹) 1370.00 / 2997.25
All Time Low / High (₹) 13.42 / 2997.25
Market Cap (₹ Cr.) 10,818
Equity (₹ Cr.) 40.5
Face Value (₹) 10
Industry PE 26.7

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

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales5,3555,5415,4555,7026,2136,8316,7487,5739,31311,263
Operating Expenses 4,7224,8934,6565,0355,5956,1926,0306,6208,61510,288
Manufacturing Costs470567631663648735653709826907
Material Costs3,4673,4353,0903,3753,8044,1403,9054,2516,0127,356
Employee Cost 289350369384413492534667684725
Other Costs 4965415666137308259379921,0931,299
Operating Profit 633648799667618639718953697975
Operating Profit Margin (%) 11.8%11.7%14.7%11.7%9.9%9.4%10.6%12.6%7.5%8.7%
Other Income 21294642725733563241
Interest 18414199879268152176204239
Depreciation 8388107142162174277340435469
Exceptional Items -10-6-11-13-26-44-30-34-13-33
Profit Before Tax 37744362846741041029245977274
Tax 12314418310413112168452368
Profit After Tax 25429944536327928922541454206
PAT Margin (%) 4.7%5.4%8.2%6.4%4.5%4.2%3.3%5.5%0.6%1.8%
Adjusted EPS (₹)70.673.9110.189.768.971.455.5102.313.451.0
Dividend Payout Ratio (%)14%14%10%13%17%17%22%18%22%24%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 9671,5991,9492,3062,5472,7512,7613,1653,1503,346
Share Capital 36404040404040404040
Reserves 9311,5581,9092,2662,5062,7112,7203,1243,1103,305
Minority Interest0000000000
Debt9976116097624161,2171,8561,3421,9331,661
Long Term Debt4223545877042721,0031,6411,3411,7191,441
Short Term Debt57525722581442142161214220
Trade Payables6636336317508461,0341,1911,8362,1552,271
Others Liabilities 7447937047269611,0601,3241,5791,7292,193
Total Liabilities 3,3723,6363,8934,5434,7696,0627,1337,9218,9689,470

Fixed Assets

Gross Block2,2122,3112,0812,6552,8583,4064,9795,9216,7657,969
Accumulated Depreciation7378291062473935608201,1581,4371,873
Net Fixed Assets1,4741,4811,9752,4092,4652,8464,1604,7635,3296,096
CWIP 30164213491627491,002728808537
Investments 124437224259320313111118126130
Inventories7186426199237559659111,1131,2871,124
Trade Receivables7166675785927127266649221,1531,303
Cash Equivalents 103622417736029261753
Others Assets206183259294282402256252248227
Total Assets 3,3723,6363,8934,5434,7696,0627,1337,9218,9689,470

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1557057183447445339681,3516321,215
PBT 37744362846741041029245977274
Adjustment 236199171197217207418508628685
Changes in Working Capital -37416484-220213-6272430-58212
Tax Paid -83-100-164-99-96-78-15-46-1544
Cash Flow From Investing Activity -98-259-412-419-420-1,052-1,128-626-950-860
Capex -77-263-598-399-404-1,062-1,163-642-956-888
Net Investments 4-5175-293541-4-7-7-3
Others -2591110-52-3139231331
Cash Flow From Financing Activity -32-177-33978-269504126-728311-318
Net Proceeds from Shares 1140000000000
Net Proceeds from Borrowing -46-55185136-220549419-296461-12
Interest Paid -168-140-98-81-82-63-135-160-191-206
Dividend Paid -14-36-86-1-47-44-960-75-13
Others 186-346-340248062-62-271117-88
Net Cash Flow 26269-33355-15-34-3-737
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)29.6823.3125.117.0511.4910.918.1513.961.726.35
ROCE (%)28.9626.0829.3419.481613.2610.2313.765.759.65
Asset Turnover Ratio1.831.751.631.511.371.261.021.011.11.22
PAT to CFO Conversion(x)0.612.361.610.952.671.844.33.2611.75.9
Working Capital Days
Receivable Days42413733373838384140
Inventory Days39403844484651494739
Payable Days596975757783104130121110

Ceat Ltd Stock News

Ceat Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of CEAT on 28-Mar-2024 16:01 is ₹2,670.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of CEAT stood at ₹10,817.6.
The latest P/E ratio of CEAT as of 28-Mar-2024 16:01 is 16.21.
The latest P/B ratio of CEAT as of 28-Mar-2024 16:01 is 2.82.
The 52-week high of CEAT is ₹2,997.3 and the 52-week low is ₹1,370.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of CEAT is ₹11,776 ( Cr.) .

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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