CEAT shares rise 5% after Q1 profit jumps multifold
CEAT rose nearly 5% to Rs 2,592 in Wednesday's trade after the company reported over 14 times rise in consolidated net profit at Rs 144.6 crore in the June quarter. The company had posted a net profit of Rs 9.25 crore in the year-ago period. Its revenue from operations during the first quarter of the current fiscal stood at Rs 2,935.2 crore, registering a rise of 4.1% compared to Rs 2,818.4 crore in the year-ago period.
On the operating performance, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter stood at Rs 384.7 crore, compared to Rs 171.3 crore in the year-ago period. While EBITDA margin stood at 13.1% in Q1 FY24. «Replacement and International business are looking good with good product-market fit.
Our product performance continues to get accepted as superior across key geographies. Better sweating of assets, improved efficiencies through digital interventions and otherwise, shall improve margins going forward,» Arnab Banerjee, MD & CEO of CEAT, said. At 10.31 am, the scrip was trading 4% higher at Rs 2,579 on BSE.
The stock has also surged 59% year-to-date. CEAT also delivered multibagger returns to its investors, as the stock has rallied 112% in the last one year. As per Trendlyne data, the average target price of the stock is Rs 1,935 which shows a downside of 25% from the current market prices.
The consensus recommendation from 18 analysts for the stock is a Hold. Out of these analysts, nine have strong buy and buy ratings, while four have strong sell and sell ratings. The remaining five have hold ratings.
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