Buy Ceat: IIFL Securities's Target Price Rs 2870

IIFL Securities recommends buying Ceat Ltd. shares at the current market price of Rs 2808, with a target price of Rs 2870. Based on technical analysis, a bullish trend is indicated in the stock. The brokerage firm believes that the stock has the potential to appreciate in the short term. Investors with a short-term investment horizon are advised to consider buying the stock for potential gains.

About Ceat:

CEAT Limited, formerly known as CEAT Tyres of India Limited, is an Indian multinational tire manufacturing company headquartered in Mumbai, India. It was established in 1958 as a joint venture between the RPG Group of India and the CEAT Group of Italy. CEAT produces a wide range of tires for various applications, including passenger cars, motorcycles, commercial vehicles, off-highway vehicles, and farm machinery. The company has manufacturing facilities in India, Sri Lanka, and Bangladesh, and exports its products to over 115 countries worldwide. CEAT is the flagship company of the RPG Group and is listed on the National Stock Exchange of India (NSE).

52 Week Price Trend:

Ceat (NSE: CEATLTD) has a current market price (CMP) of Rs 2808. Over the past 52 weeks, its stock has fluctuated between a high of Rs 2998.45 and a low of Rs 1357. The CMP is closer to the high than the low, indicating that the stock has performed relatively well in recent times. Investors may consider factors such as the company's financial performance, industry outlook, and overall market conditions before making investment decisions based on these price points.

Stratzy's MOST Analysis:

CEATLTD has been rated BB by Stratzy's MOST framework, indicating a medium fundamental risk. This rating is based on an analysis of the company's management, outlook, safety, and trend. The rating of BB suggests that CEATLTD has some strengths and weaknesses in these areas. Investors should consider these factors carefully before investing in CEATLTD.

Company's Fundamentals:

Ceat (NSE: CEATLTD) is a leading tire manufacturer in India, providing tires for a wide range of vehicles. Its current financial ratios indicate a moderate stock price-to-earnings (PE) ratio of 17.34, which measures its earnings per share in relation to its stock price. The price-to-book (PB) ratio of 3.11 suggests that Ceat's market value is 3.11 times greater than its book value, indicating potential overvaluation. In terms of income generation, Ceat offers a dividend yield of 0.42%, which is the annual dividend paid per share divided by its current market price, providing a modest level of passive income for investors.

Fundamental and Technical information provided in this blog were last updated on 21 Aug, 2024

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