Buy Ceat: IIFL Securities's Target Price Rs 2775

IIFL Securities has issued a buy recommendation for Ceat Limited, with a target price of Rs 2775. The current market price of Ceat is Rs 2718.6. This suggests a potential upside of around 2.1%. The recommendation is based on the company's strong financial performance, with revenue and profit growth expected to continue in the coming quarters. The company's focus on innovation and product development is also seen as a positive factor.

About Ceat:

CEAT (formerly known as Cavi Elettrici e Affini Torino) is an Indian multinational tire manufacturing company headquartered in Mumbai, Maharashtra, India. Established in 1958 as a joint venture with the Italian tire company Pirelli, CEAT is one of India's leading tire manufacturers and the fourth largest in the country. The company manufactures a wide range of tires for passenger vehicles, motorcycles, trucks, buses, agricultural machinery, and off-road vehicles. CEAT has a strong presence in India and exports to over 100 countries globally.

52 Week Price Trend:

Ceat Limited (NSE: CEATLTD) is currently trading at Rs 2718.6, which falls within its 52-week range of Rs 1357 (low) and Rs 2998.45 (high). This indicates that the stock is currently trading closer to its 52-week high than its low. While the stock has experienced significant growth over the past year, it is important to note that its price has recently corrected from its peak. Investors should carefully consider the stock's fundamentals and market conditions before making any investment decisions.

Stratzy's MOST Analysis:

CEATLTD's MOST rating of BB indicates medium fundamental risks. This assessment is based on Stratzy's evaluation of the company's Management, Outlook, Safety, and Trend. The rating considers factors such as the company's financial performance, industry outlook, and management team. CEATLTD's BB rating suggests that investors should be aware of potential risks but should also consider the company's positive attributes before making investment decisions.

Company's Fundamentals:

Ceat Ltd. (NSE: CEATLTD) is a leading tyre manufacturer in India. The company's financial ratios provide valuable insights into its valuation and profitability. The Stock Price-to-Earnings (PE) ratio of 17.34 indicates that Ceat's stock is currently trading at 17.34 times its annual earnings. The Price-to-Book (PB) Ratio of 3.11 suggests that the market value of Ceat's assets is about 3.11 times their book value. Finally, the Dividend Yield of 0.42% indicates that Ceat is currently paying out 0.42% of its share price as dividends. These ratios collectively suggest that Ceat is currently trading at a fair valuation, with moderate growth potential and a low dividend yield compared to other stocks in the sector.

Fundamental and Technical information provided in this blog were last updated on 28 Jun, 2024

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