Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
1230.65
Change Change %
-29.75 -2.36%

Updated:25 Sep, 2018, 15:59 PM IST

BSE
1235.30
Change Change %
-25.40 -2.01%

Updated:25 Sep, 2018, 16:01 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Edelweiss
N/A
07-08-2017 Buy 1787.00 2000.00
N/A
Target Hit Long (1Y)
07-08-2018

Edelweiss maintains buy on CEAT

CEAT's Q1FY18 EBITDA at INR540mn (down 70% YoY) was around 38% below our estimates due to gross margin miss (high cost rubber inventory) and lower tonnage sales (-5% YoY)). Sales were impacted across the board - replacement (GST destocking), OEMs (BS-IV transition impact in CVs) and exports (import barriers in Indonesia). Q2FY18 onwards margins should recover led by (1) volume recovery - re-stocking and strong growth across 2W (scooters) and PV (2) correction in raw material prices (down 10% QoQ) and tight control on discretionary spend. Market share gains in 2W and PV segments to sustain led by capacity addition, new launches and reach expansion. 

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