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5008

CEATBSE:500878 Stock Report

Market Cap

₹53.6b

7D

-2.4%

1Y

25.6%

Updated

20 Oct, 2021

Data

Company Financials +
500878 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends4/6

500878 Overview

CEAT Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally.

CEAT Competitors

Compagnie Générale des Établissements Michelin Société en commandite par actions

ENXTPA:ML

€23.6b

Trelleborg

OM:TREL B

kr51.2b

Nokian Renkaat Oyj

HLSE:TYRES

€4.4b

Cheng Shin Rubber Ind

TWSE:2105

NT$113.1b

Price History & Performance

Summary of all time highs, changes and price drops for CEAT
Historical stock prices
Current Share Price₹1,329.55
52 Week High₹1,018.60
52 Week Low₹1,763.15
Beta0.44
1 Month Change1.12%
3 Month Change-2.71%
1 Year Change25.62%
3 Year Change26.97%
5 Year Change8.79%
Change since IPO6,547.75%

Recent News & Updates

Shareholder Returns

500878IN Auto ComponentsIN Market
7D-2.4%-0.9%1.2%
1Y25.6%75.5%65.9%

Return vs Industry: 500878 underperformed the Indian Auto Components industry which returned 75.5% over the past year.

Return vs Market: 500878 underperformed the Indian Market which returned 65.9% over the past year.

Price Volatility

Is 500878's price volatile compared to industry and market?
500878 volatility
500878 Beta0.44
Industry Beta0.97
Market Beta1

Stable Share Price: 500878 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 500878's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19587,529Anant Goenkahttps://www.ceat.com

CEAT Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally. The company offers rubber tires and tubes for scooters, bikes, three wheelers, cars, buses, LCVs, trucks, and tractors. CEAT Limited also exports its products to approximately 100 countries.

CEAT Fundamentals Summary

How do CEAT's earnings and revenue compare to its market cap?
500878 fundamental statistics
Market Cap₹53.61b
Earnings (TTM)₹4.91b
Revenue (TTM)₹83.96b

11.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500878 income statement (TTM)
Revenue₹83.96b
Cost of Revenue₹47.61b
Gross Profit₹36.35b
Expenses₹31.44b
Earnings₹4.91b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)121.33
Gross Margin43.29%
Net Profit Margin5.85%
Debt/Equity Ratio45.9%

How did 500878 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

15%

Payout Ratio

Valuation

Is CEAT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500878 (₹1329.55) is trading below our estimate of fair value (₹2716.32)

Significantly Below Fair Value: 500878 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500878 is good value based on its PE Ratio (11x) compared to the Indian Auto Components industry average (21.6x).

PE vs Market: 500878 is good value based on its PE Ratio (11x) compared to the Indian market (21.9x).


Price to Earnings Growth Ratio

PEG Ratio: 500878 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 500878 is good value based on its PB Ratio (1.6x) compared to the IN Auto Components industry average (2.1x).


Future Growth

How is CEAT forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500878's forecast earnings growth (8.6% per year) is above the savings rate (6.7%).

Earnings vs Market: 500878's earnings (8.6% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: 500878's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500878's revenue (7.9% per year) is forecast to grow slower than the Indian market (12.8% per year).

High Growth Revenue: 500878's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500878's Return on Equity is forecast to be low in 3 years time (10.4%).


Past Performance

How has CEAT performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500878 has high quality earnings.

Growing Profit Margin: 500878's current net profit margins (5.8%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 500878's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: 500878's earnings growth over the past year (330.9%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: 500878 earnings growth over the past year (330.9%) exceeded the Auto Components industry 139.8%.


Return on Equity

High ROE: 500878's Return on Equity (14.7%) is considered low.


Financial Health

How is CEAT's financial position?


Financial Position Analysis

Short Term Liabilities: 500878's short term assets (₹22.4B) do not cover its short term liabilities (₹30.5B).

Long Term Liabilities: 500878's short term assets (₹22.4B) exceed its long term liabilities (₹17.5B).


Debt to Equity History and Analysis

Debt Level: 500878's debt to equity ratio (45.9%) is considered high.

Reducing Debt: 500878's debt to equity ratio has increased from 32% to 45.9% over the past 5 years.

Debt Coverage: 500878's debt is well covered by operating cash flow (88.6%).

Interest Coverage: 500878's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

What is CEAT current dividend yield, its reliability and sustainability?

1.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500878's dividend (1.35%) is higher than the bottom 25% of dividend payers in the Indian market (0.33%).

High Dividend: 500878's dividend (1.35%) is low compared to the top 25% of dividend payers in the Indian market (1.38%).


Stability and Growth of Payments

Stable Dividend: 500878's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500878's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), 500878's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500878's dividends in 3 years are forecast to be well covered by earnings (17% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Anant Goenka (40 yo)

9.5yrs

Tenure

₹31,257,000

Compensation

Mr. Anant Vardhan Goenka serves as Non-Independent Non-Executive Director at Zensar Technologies Limited since 2019. Mr. Goenka served as Additional Non-Independent Non-Executive Director at Zensar Technol...


CEO Compensation Analysis

Compensation vs Market: Anant's total compensation ($USD416.30K) is about average for companies of similar size in the Indian market ($USD382.31K).

Compensation vs Earnings: Anant's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 500878's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: 500878's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CEAT Limited's employee growth, exchange listings and data sources


Key Information

  • Name: CEAT Limited
  • Ticker: 500878
  • Exchange: BSE
  • Founded: 1958
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: ₹53.613b
  • Shares outstanding: 40.45m
  • Website: https://www.ceat.com

Number of Employees


Location

  • CEAT Limited
  • RPG House
  • 463, Dr. Annie Besant Road
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 12:01
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.