Buy Ceat: IIFL Securities's Target Price Rs 2660

IIFL Securities recommends buying Ceat shares at the current market price of Rs 2612.45 on June 27. The brokerage firm has set a target price of Rs 2660 for the stock, indicating a potential upside of approximately 1.85%. This positive outlook is likely driven by Ceat's strong financial performance, market share gains, and growth potential in the tire industry.

About Ceat:

Ceat Limited, a flagship company of the RPG Group, is one of India's leading tyre manufacturers. It produces a wide range of tyres for various segments, including passenger cars, commercial vehicles, two-wheelers, and off-highway vehicles. Ceat has a strong presence in India, Sri Lanka, Bangladesh, and Egypt, with a growing global footprint. The company has a state-of-the-art manufacturing facility in Halol, Gujarat, and a research and development center in Mumbai. Ceat is committed to providing innovative and high-quality tyres that meet the evolving needs of its customers.

52 Week Price Trend:

CEATLTD, a leading tire manufacturer listed on the National Stock Exchange (NSE), has been exhibiting significant growth in its share price. Despite a decline from its 52-week high of Rs 2998.45, the current market price (CMP) of Rs 2612.45 represents a substantial increase from its 52-week low of Rs 1357. This surge highlights the company's resilience and strong fundamentals, indicating potential for further growth and investment opportunities.

Stratzy's MOST Analysis:

CEATLTD has been rated BB by Stratzy's MOST framework, indicating a medium level of fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. The framework uses a scoring system to evaluate each of these factors, with higher scores indicating lower risk. CEATLTD's score of BB suggests that it has some areas of concern, but overall its fundamentals are sound.

Company's Fundamentals:

CEAT (NSE: CEATLTD) is a publicly traded company on the National Stock Exchange of India (NSE). Its stock currently has a Price-to-Earnings (PE) ratio of 17.34, indicating that investors are willing to pay 17.34 times the company's earnings for each share they own. The Price-to-Book (PB) ratio of 3.11 suggests that the company's market value is 3.11 times its book value or net asset value. Additionally, CEAT offers a Dividend Yield of 0.42%, implying that shareholders can expect to receive a 0.42% return on their investment annually through dividends.

Fundamental and Technical information provided in this blog were last updated on 27 Jun, 2024

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