Ceat Ltd.
NSE: CEATLTDCeat Ltd.: A 30-second snapshot
CEAT Ltd., a tyre manufacturer in the RPG Group, trades at ₹3,212 with a trailing PE of 18.6 and forward PE of 13.5. Q4 FY26 revenue rose 23% YoY with net profit of ₹244 crore, yet the stock has declined 14% over the past year and 21% over the past 3 months, sitting 27.6% below its 52-week high and below both its 50-DMA (₹3,467) and 200-DMA (₹3,616). Debt-to-equity of 64.7 is rising, while 5-year earnings CAGR of 183% and revenue CAGR of 23% reflect a low-base recovery rather than a structurally high-quality earnings stream.
P/E
18.6
Forward P/E
13.5
ROE
+14.8%
Debt / Equity
64.74
Profit Margin
+4.5%
Div. Yield
+0.9%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
55/100
News
7 headlines · 4 positive · 1 negative
CEAT Board Clears FY26 Results, Steep Dividend and Future Credit Line - TipRanks
TipRanks
CEATLTD: Q4 revenue up 23% YoY, net profit at ₹244 crore, and ₹35/share dividend recommended - TradingView
TradingView
CEATLTD: Q4 FY26 saw robust revenue and margin growth, led by OEM and international segments - TradingView
TradingView
CEAT clears FY26 results, hefty dividend and governance code changes - TipRanks
TipRanks
CEAT, Other Tyre Stocks Deflate As Indigo And Spicejet Fly Into Turbulence Over Oil Boil - HDFC Sky
HDFC Sky
Recent context
- ·CEAT reported Q4 FY26 results on 28 April 2026: revenue up 23% YoY, net profit of ₹244 crore, and a ₹35/share dividend recommended by the board — the board also made governance code changes per reports.
- ·A headline from 30 April 2026 linked tyre sector stocks to oil price volatility, noting pressure on the segment as crude moves affect both input costs and broader market sentiment for the group.
- ·Mean analyst rating of 2.71 across 18 analysts (1–5 scale, lower = more constructive) as of the data date; the forward PE of 13.5 versus trailing PE of 18.6 implies the consensus models earnings expansion in FY27.
Strengths
- +5-year revenue CAGR of 23.3% and earnings CAGR of 183.2% reflect meaningful recovery from a depressed base, with Q4 FY26 confirming 23% YoY revenue growth and OEM and international segments cited as drivers.
- +Forward PE of 13.5 represents a 27% discount to trailing PE of 18.6 and is the lowest PE multiple among the 6 Auto sector peers tracked (next lowest: M&M at 20.5, Maruti at 28.3).
- +FCF was positive in 4 of the tracked years, and the board recommended a ₹35/share dividend for FY26, implying some capacity for shareholder returns alongside capex.
- +Profit margin of 4.45% reflects the Q4 FY26 margin expansion described in earnings coverage, representing an improvement relative to prior periods in the company history.
Weaknesses
- −Debt-to-equity of 64.7 is rising and materially above typical auto-components norms; elevated leverage in a cyclical sector amplifies downside risk if volumes or margins compress.
- −ROE of 14.79% has been above 15% in only 1 of the tracked historical years, and the quality score of 45 ranks 5th of 6 Auto peers — consistent, high-quality returns have not been the historical pattern.
- −Stock has declined 14% over 1 year and 21% over 3 months, trading below both moving averages with a 27.6% drawdown from the 52-week high and a single identifiable support level at ₹3,133.
- −Profit margin of 4.45% is thin for a cyclical manufacturer; any input cost pressure (rubber, crude-linked materials) or volume softness could disproportionately impact earnings.
Open questions
- ?Does the 5-year earnings CAGR of 183% reflect a genuine operational turnaround, or is it primarily a mathematical artefact of recovering from pandemic-era lows — and has anything structurally changed in CEAT's cost structure or market position?
- ?With D/E at 64.7 and the debt trend rising, what is the trajectory of the debt-service burden relative to EBITDA, and at what utilisation or margin level does the interest cover become a concern?
- ?CEAT ranks 1st of 6 peers on PE (lowest multiple) but 5th of 6 on quality score — does the valuation discount appropriately reflect the quality gap versus peers like Bajaj Auto (ROE 28%) and M&M (ROE 18.75%), or is there a different explanation for the multiple disparity?
- ?Given that the stock trades 27.6% below its 52-week high despite a strong Q4 earnings print, what specific concerns — debt levels, input costs, competitive pressures, or broader sector rotation — are most plausibly driving the divergence between results and price?
Peer comparison: Auto
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CEATLTD | Ceat Ltd.You're viewing | 18.6 | +14.8% | 45 |
| Industry avg | across 5 peers | 28.0 | +15.0% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 36.0 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 28.3 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹3,212.20
SMA 50
₹3,466.64
SMA 200
₹3,615.81
RSI (14)
39.7 (neutral)
From 52w high
-27.6%
1Y return
-14.0%
3M return
-21.0%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 64.7 is materially elevated for an auto-components manufacturer operating in a cyclical sector; the debt trend is rising, which increases interest burden and balance sheet vulnerability.
- mediumROE of 14.79% has exceeded 15% in only 1 of the tracked historical years, and the quality score of 45 ranks 5th of 6 peers in the Auto sector — suggesting low-quality earnings persistence rather than a temporary trough.
- mediumStock is trading below both its 50-DMA (₹3,467) and 200-DMA (₹3,616), down 21% over 3 months and 14% over 1 year, with a 27.6% drawdown from the 52-week high. RSI at 39.7 has not yet reached oversold territory.
- lowNews sample totals only 7 articles, limiting the reliability of the sentiment reading. Sector-level headwind noted: tyre stocks flagged as pressured by oil price volatility in one headline.
Cross-section contradictions
- Q4 FY26 revenue grew 23% YoY and net profit of ₹244 crore was accompanied by a ₹35/share dividend recommendation, yet the stock has declined 21% over 3 months and sits 27.6% below its 52-week high — the market appears to be weighing the rising debt load and structural quality concerns against the near-term earnings momentum.
- Mean analyst rating of 2.71 across 18 analysts (1–5 scale, lower = more constructive) is in a relatively constructive zone, yet trailing 1-year price return is -14%, indicating a meaningful gap between sell-side posture and market price action.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days