CEAT Stocks Soared 37% after 429.5% Growth in Q4 Profit!

Indian benchmark indices ended Monday’s session considerably higher, boosted by robust gains in information technology and utility sectors. Broader indices gained in line with the main indices.   

CEAT Ltd, a small-cap tyre stock, has impressed investors with its strong uptrend. On the BSE, shares are currently trading near a 52-week high of Rs 1,981 per share. Following the announcement of robust quarter results, shares of the company had a significant rally, gaining more than 37% over the last month.   

Taking into account the company’s quarterly performance, on a consolidated basis, it reported a healthy growth of 10.91% from Rs 2,591.99 crore registered in Q4FY22, recording total revenue of Rs 2,874.82 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it skyrocketed 429.5% from Rs 25.25 crore to Rs 133.70 crore.    

Despite capital expenditures, debt reduced by about Rs 250 crore over the third quarter. Leverage ratios improved quarter-on-quarter and year-on-year while the lowest debt-to-EBITDA ratio was recorded in the past six quarters.  

CEAT Ltd, the flagship company of RPG Enterprises, is headquartered in Mumbai. While being one of India’s leading tyre manufacturers, the company is also well-established in global markets. The business provides services through a vast network of more than 400 Ceat Exclusive Outlets, 4,500 dealers and 51,000 sub-dealers. It provides a range of tyres which provide good grip, superior control and excellent driving experience. With the market capitalisation of about Rs 7,800 crore, it is one of the strong growing company of its sector.

As the company expands, its objective is to reduce the environmental impact of the production of its products by half by the year 2030. The company is adopting a number of techniques to achieve the goal, including green material technology, zero-waste and biodegradable packaging, green labelling and green delivery.  

Keep a close eye on this stock for the upcoming sessions!