report by: adrian john [email protected] tyres stands out for its superior grip and...

Source: Company, www.dynamiclevels.com

Report By: Adrian John – [email protected]


Ceat Ltd- Gripped by Wheels of Passion

Where There Is A Wheel There Is Way 3

A Tyre For All Terrain 4

Product Overview 5

Tyre Industry Outlook 7

Factors Impacting Growth 8

Peer Comparison 10

Company Financials 11

Shareholding Pattern 15

Future Prospects 16

Investor Guidance 17

Investment Rationale 19


Where There Is a Wheel There

Is A Way

Standing tall as the Vanguard of the RPG Group, CEAT TYRES has been carrying the mantle of the nation for a little over half a century. Famously known as the flagship company of the Indian Tyre Industry, Ceat specializes in manufacturing Automotive Tyres, Tubes and Flaps. The company had started its operations a decade after India won its independence from British Colonialism and renamed itself as CEAT LIMITED in the year 1990. As a prominent leader of the tyre industry, CEAT runs two of its subsidiaries in Sri Lanka and Bangladesh and believes in combining the strength of its legacy with the new age mantra of youth, dynamism and aggression even as it drives the nation on wheels of passion.

The management has set its focus on expanding its market shares by evolving into a strong Global Brand. Sticking to its long term goal the Company has strengthened its long standing relationships with leading OEMs while entry into new models and emerging as a partner of choice in Two wheeler segment were key developments in the company’s growth model. Ceat’s primary objective has always been the upliftment of Safety and Control measures. The company’s R&D facility at Halol is equipped with unique features like Virtual Performance Prediction, Advanced indoor and Vehicle Dynamics Testing Of Tyres. The R&D facility develops new products and alternate materials while keeping in mind the weight of the tyres, material cost and improvement of existing compounds.

The company strives to manufacture the finest tyres with tough, smooth and secure grip on roads. It also specializes in manufacturing high performance radials for a wide range of vehicles.

EXCHANGE SYMBOL CEAT

Current Price * (Rs.) 903.00

Face Value (Rs.) 10

52 Week High (Rs.) 1319.90 (07-Oct-15)

52 Week Low (Rs.) 595.20 (09-Jun-15)

Life Time high (Rs.) 1319.90 (07-Oct-15)

Life Time low (Rs.) 20.85 (17-Sep-01)

Average Daily Movement 37.38

Average Volume [20 days] 460857

1 Month Return (%) -17.82

P/E Ratio (x) 8.16

Book Value 524.04

Market Cap 3638.08 (Cr)

% of Promoter’s pledged 0


A TYRE FOR ALL TERRAIN

Ceat Tyres stands out for its superior grip and outstanding

safety features. The company is continuously expanding its

presence in the domestic market with products like bias

and radial tyres for a wide range of vehicles that cover the

vast expanse of the country’s extremely rugged terrain.

Market shares have been constantly growing in the

company’s passenger tyre category even as Ceat builds on

its corporate ethos of passion, reliability, dynamism and

toughness. Every tyre that rolls out of Ceat’s

manufacturing units bears the hallmark of distinction,

ensuring safety for the millions of passengers who travel

across latitude and the longitudes of the country. A

company with a difference, CEAT stands for its values and

believes that values are the Way Of Life. It has introduced

CAIRO culture in its work ethics and awards its employees

for demonstrating exemplary practice of values. Challenge,

Aspiration, Integrity, Result and Openness which form the

very base of CAIRO is the life blood of CEAT’s dynamism.

Attempting new things by encouraging people to dream is

the mantra that drives the company to new heights. In line

with this commitment, the Company strengthened its long-

standing relationships.


Product Overview

CEAT's products are a showcase of its distinctive passion, customized to different market segments with their unique needs. The Company continuously invests in strengthening its brand connects with its consumers through targeted communication high lightening the special features of its products.

MOTORCYCLE With safety at the heart of CEAT Bike tyres, it offers excellent handling at high speeds. EAT Two wheeler tyres provides excellent water dispersal mechanics which gives better grip on wet surfaces and improved control while cornering. Truly, the drive is a breeze. SCOOTER The range comprises a fleet of impressive scooter tyres. Providing better mileage and excellent grip over wet and dry surfaces means a smooth two wheeler drive across the roads. Plus better cornering with excellent maneuverability and traction for more vroom!

CAR & SUV Characterized by rigid tread blocks, CEAT Car & SUV tyres not only look sturdy, but actually ensure better control. These four wheeler tyres enhances on-road and off-road stability and protects from cuts and stone drilling. Higher tyre life with ultimate dry and wet drip makes it nearly unbeatable.

LCV The Light Commercial Vehicle Tyre’s are constructed keeping in mind the high loading requirement and is designed to provide both mileage and uniform wearing leading to better durability, so the LCV vehicle is always up for a tough drive. The equal tension casing design provides cooler running at higher speeds for a longer and power-driven tyre life.


LAST MILE .…………………………... Each ride on these three wheeler tyres is a power-packed experience fuelled by a combination of high mileage and high loading capability. The angular notched rib pattern ensures high mileage for Autos & Last Mile vehicles at all paces. FARM VEHICLES & TRAILERS The high traction Farm & Agriculture Vehicle front and rear tyre are developed for mighty performance over hard and black soil for sturdy crop that leaves behind strong stubbles. Not only does it self-clean, but assures improved puncture resistance and longer tyre life as well – thus assuring farmers of a tension free usage. TRUCKS / BUSES……… ……………….. Built for hard-core commercial vehicles like trucks and buses, these tyres have uniform tread wear and increased mileage for a better CPKM (cost per kilometer). These Truck & Bus Tyres have higher casing durability and cooler running that helps the vehicle go what the distance and ensures uninterrupted progress to the fleets. OFF THE ROAD/ SPECIALITY ………… Ideal for severe heavy duty applications, off the road (OTR) or specialty tyres are developed for varied applications such as mining, quarrying, rock excavation, construction and port applications. Made with premium casings and durable compounds, these tires are built for heavy loads, solid traction and outstanding resistance to punctures.


Tyre Industry Outlook

The Indian automobile industry faced under a contracted

demand during the year under review, particularly in

commercial and farm segments. However, demand had

increased in cars and 2-wheelers vehicles registered a

positive growth. This had a corresponding impact on tyre

industry as well, with the respective tyre categories

automobile categories.

There was a decrease in demand in export market also,

and in increase in demand for radial tyres being supplied

by other countries, and shrinkage in demand for bias tyres.

And the prices realized from export markets also registered

continued reduction, for the competition from low cost

Chinese tyres.

The world’s biggest consumer of rubber, along with

increased supply in markets such as Thailand, has kept

international rubber prices on a tight leash during the year

under review. This helped the industry register respectable

margins.

CEAT in the tyre industry has agricultural tyres which are

designed for optimum performance under all working

conditions. They are best suitable for agricultural and

forestry jobs with occasional on road driving.

Before using these tyres for any other application the

manufacturer should be consulted.

LOAD & INFLATION PRESSURE: The tyres should not be

overloaded & should not be driven over inflated or under

inflated. Correct inflation pressure should be used

depending upon the load on the tyre.

For industrial use or for on the road applications, an

inflation pressure of 1.4 bar (20psi) should be maintained

for tractor drice wheel tyres, even when the load is

insignificant.

Inflation pressure should not be lower than 1.1bar (16 psi)

for field application. However, if any specific operation

requires a lower pressure, it should be raised back to the

normal pressure after completing the specific task.

RIMS & TUBES: Always use the recommended rim size.

Always use a new tube with a new tyre. Tube size should

be identical to tyre size. For tractor drive wheels use an

Air-Water valve tube.

MOUNTING & DISMOUNTING: Always practice correct

mounting and dismounting procedures. After mounting the

tyres inflate it to seat the beads. Then deflate it completely

and re-inflate with recommended operating pressure.

OFF THE ROAD & INDUSTRIAL TYRES: CEAT off road tyres

are designed for mining, road construction, timber hauling,

material handling, port applications and other industrial &

construction jobs. Before using them for any other

application the manufacturer should be consulted. Wrong

selection of tyre, improper handling, poor maintenance

and improper driving habits can reduce tyre life.


FACTORS IMPACTING GROWTH Continuous innovation leading to the creation of best-in-

class products with safety as top priority is at the heart of

CEAT's business model. Striving to be the employer of

choice, the Company is constantly striving to nurture the

growth, empowerment and satisfaction of its employees,

inspiring them in turn to excel and deliver value to its

customers and other stakeholders. CEAT's culture of

passion has imbued it with the strength to challenge

established norms and achieve new heights of success

through the spirit of collaboration.

CEAT’s culture of passion seeps through its entire fabric,

extending across its partnerships with OEMs, which play a

pivotal role in sustaining the organization’s motto of safety

and control.

Established in 2011, CEAT’s modern state-of-the art R&D

facility at Halol plant has some of the industry-best

features that include:

Capability for virtual performance prediction

Advanced indoor and vehicle dynamics testing of

tyres

3-dimensional modeling and prototyping

Structural and noise simulations

Reverse engineering, nanotechnology and

advanced materials development capabilities etc.


The Company’s R&D capabilities are focused on development of new products and alternate materials, development of green tyres, reduction of tyre weight and material cost and performance improvement of existing compounds, leading to improved durability, tread life, grip, rolling resistance, ride and handling of tyres. The resultant superior design, engineering, material development and process engineering ensure superior safety and control across the complete range of products in the CEAT portfolio to enrich customer experience. All CEAT products are subjected to stringent tests on the road in real-time conditions before they are launched in the market.

Outsourcing CEAT has been following an “asset –light – approach” to its manufacturing to conserve capital and increase the returns to shareholders. Over the years, the Company’s outsourcing business has grown substantially both in terms of volumes and quality systems. Focus at the outsourcing units continues to be on two and three wheeler tyre categories. The Company is scaling up its operations in line with the category growth.

Branding The Company believes that effective marketing and branding is critical to the success of its products, apart from quality and innovation. The consolidated advertisement and sales promotion expenses increased by CAGR of 33.16% from FY 2011-12 to FY 2014-15. The Company intends to promote its products and brands and competitively position them in the market by continuing to invest in innovative marketing campaign, particularly related to the two-wheeler and passenger car tyres. The marketing spends are directed towards sharply defined target product categories with differentiated positioning strategies. In line with the increasing brand building focus, in FY 2014-15 the company participated in key events like the Cricket World Cup 2015, MTV Roadies, MTV Chase the Monsoon and Mahindra Adventure. Further the Company plans to increase its marketing spend in fiscal 2016 and will continue to invest higher outlays on branding over the years to drive the expansion of the market share of its passenger tyres.

Environment The Company’s environment protection principle is - Reduce Reuse and Recycle of Waste, while its approach is

Pollution Prevention instead of Control. Periodic monitoring and review of consent conditions is its topmost priority. The Company has implemented various projects to reduce Green House Gases (GHG) emissions such as Briquette Boiler and use of cleaner fuel such as Piped Natural Gas. Water consumption reduction projects are implemented at all the plants. The Halol & Nashik plants are ‘zero discharge facilities’. The Halol, Bhandup and Nashik manufacturing plants are ISO 14001 certified. Occupational Health The Company’s objective is ‘Zero Occupational Illness Cases’ and it has carried out Occupational Health Risk Assessment in all the plants. Ergonomic study is carried out and recommendations given are implemented. Cross Functional Teams have been formed to implement fatigue reduction projects to boost productivity. The Company has full-fledged Occupational Health Centres manned by Medical Staff 24x7. Ambulances and First-aid medical facilities are provided in all the three plants. Periodical medical check-ups of all employees, including contractor employees, are carried out periodically.

Safety The Company’s objective is ‘Zero Accident’. To achieve this objective, it has adopted a proactive approach of risk management that includes risk elimination, substitution and control by implementing engineering measures. Safety Induction Training to new entrants and periodical training to all employees including contractors is a continuous activity. Consultation and Communication is the driver for involvement of employees in the safety management system. The Halol, Bhandup & Nashik manufacturing plants are OHSAS 18001 certified. Put together, the three facets of sensitised safety culture, high quality safety infrastructure and strong management practices will help the Company produce consistent results in safety. HUMAN CAPITAL CEAT has always made sincere, substantive and sustained efforts towards building an eco-system which promotes the development and advancement of all its employees. The establishment of institutionalised academies, in Sales and Manufacturing functions is a key initiative to improve operational excellence.


PEER COMPARISON

Company Name: CEAT LTD

JK TYRE & IND LT

BALKRISHNA INDS

APOLLO TYRES LTD

MRF LTD

Latest Fiscal Year: 03/2016 03/2016 03/2016 03/2016 03/2016

52-Week High 1,319.90 128.10 758.80 223.40 46,405.35

52-Week High Date 10/7/2015 8/5/2015 7/1/2015 8/5/2015 8/5/2015

52-Week Low 595.20 73.80 549.05 127.05 31,002.00

52-Week Low Date 6/9/2015 2/29/2016 3/1/2016 1/20/2016 5/24/2016

Daily Volume 438,562 575,655 6,896 911,626 4,804

Current Price: 913.35 87.20 672.50 154.95 33,425.60

52-Week High % Change -30.8% -31.9% -11.0% -30.6% -28.0%

52-Week Low % Change 53.5% 18.2% 23.0% 22.0% 7.8%

Total Common Shares (M)

40.5 226.8 96.7 509.0 4.2

Market Capitalization 36,945.1 19,778.1 65,002.9 78,873.4 141,762.7

Total Debt 6,285.5 26,697.0 13,063.4 13,496.7 23,706.8

Minority Interest 322.5 - - - 1.2

Cash and Equivalents 1,474.3 1,544.5 5,708.5 7,158.3 19,808.2

Current Enterprise Value 42,078.8 44,930.6 72,357.8 85,211.7 145,662.5

CEAT has given a return of 53.5% from its 52-week low


COMPANY FINANCIALS

Periodicity: 3/12 3/13 3/14 3/15 3/16

Income Statement

Revenue 46,490 50,522 55,540 58,024 56,809

- Cost of Goods Sold

Gross Income

- Operating Expenses 44,379 46,777 49,804 52,097 49,993

(Research & Dev Costs) 426 171 187 209

Operating Income 2,111 3,745 5,735 5,927 7,148

- Interest Expense 1,560 1,501 1,418 1,090

- Foreign Exchange Losses (Gains) 16 (29) 16 47

- Net Non-Operating Losses (Gains) 293 608 268 74 723

Pretax Income 242 1,665 4,032 4,716 6,425

- Income Tax Expense 61 463 1,324 1,576 1,978

Income Before XO Items 181 1,202 2,708 3,139 4,447

- Extraordinary Loss Net of Tax - - - -

- Minority Interests - - (4) (33) (18)

Diluted EPS Before XO Items 5.29 34.40 76.14 84.62 110.38

Net Income Adjusted* 181 1,202 2,712 3,172 4,465

EPS Adjusted 5.29 35.10 76.59 78.41 110.38

Dividends Per Share 1.00 4.00 10.00 10.00 11.50

Payout Ratio % 18.75 11.40 13.49 12.75 10.42

Total Shares Outstanding 34 34 34 40 40

Diluted Shares Outstanding 34 35 36 37 40

EBITDA 2,839 4,551 6,601 6,861 8,223

*Net income excludes extraordinary gains and losses and one-time charges.


Balance Sheet

3/12 3/13 3/14 3/15 3/16

Total Current Assets 14,485 14,550 17,956 19,228 15,852

+ Cash & Near Cash Items 269 978 1,128 1,015 1,073

+ Short Term Investments 336 70 493 3,335 402

+ Accounts & Notes Receivable 6,366 6,628 7,545 7,049 6,188

+ Inventories 6,027 5,588 7,536 6,801 6,621

+ Other Current Assets 1,487 1,286 1,254 1,027 1,569

+ Long Term Investments 0 6 0 0 1,244

Gross Fixed Assets 21,080 21,734 23,021 25,605

Accumulated Depreciation 5,888 6,560 7,396 8,303

+ Net Fixed Assets 15,191 15,174 15,625 17,302 24,026

+ Other Long Term Assets 945 1,740 1,820 1,695 259

Total Current Liabilities 17,769 18,431 19,110 15,943 12,534

+ Accounts Payable 6,689 7,925 6,888 6,583 6,435

+ Short Term Borrowings 7,238 6,136 7,505 4,206 386

+ Other Short Term Liabilities 3,841 4,370 4,717 5,154 5,713

Total Long Term Liabilities 6,075 5,183 5,642 5,132 7,879

+ Long Term Borrowings 5,716 4,240 4,233 3,544 5,900

+ Other Long Term Borrowings 359 943 1,408 1,588 1,980

Total Liabilities 23,844 23,615 24,752 21,075 20,414

+ Long Preferred Equity 2 1 0 0 0

+ Minority Interest 0 0 363 327 323

+ Share Capital & APIC 2,031 2,031 2,140 6,075 405

+ Retained Earnings & Other Equity 4,745 5,823 8,146 10,748 20,241

Total Shareholders Equity 6,778 7,855 10,649 17,149 20,968

Total Liabilities & Equity 30,622 31,470 35,401 38,224 41,381

Book Value Per Share 198 229 300 416 510

Tangible Book Value Per Share 173 205 276 396 505


Cash Flow 3/12 3/13 3/14 3/15

Net Income 181 1,202 2,712 3,172

+ Depreciation & Amortization 728 806 865 934

+ Other Non-Cash Adjustments 90 444 467 351

+ Changes in Non-Cash Capital (1,607) 1,955 (3,736) 1,714

Cash From Operating Activities (608) 4,407 309 6,171

+ Disposal of Fixed Assets 4 1 33 29

+ Capital Expenditures (1,444) (848) (1,478) (3,028)

+ Increase in Investments (305) 0 (0)

+ Decrease in Investments 425 0 0

+ Other Investing Activities 124 245 (35) 305

Cash From Investing Activities (1,195) (602) (1,481) (2,693)

+ Dividends Paid (79) (40) (167) (404)

+ Change in Short Term Borrowings (1,180) 1,738 (3,090)

+ Increase in Long Term Borrowings 1,717 0 1,883 694

+ Decrease in Long Term Borrowings (1,589) (2,294) (1,263)

+ Increase in Capital Stocks 0 109 4,000

+ Decrease in Capital Stocks (1) (1) 0

+ Other Financing Activities 35 (323) 60 (401)

Cash From Financing Activities 1,673 (3,133) 1,328 (464)

Net Changes in Cash (130) 672 156 3,014

Free Cash Flow (CFO-CAPEX) (2,052) 3,559 (1,170) 3,143

Free Cash Flow To Firm (884) 4,643 (217) 3,868

Free Cash Flow To Equity (332) 790 189 (486)

Free Cash Flow per Share (59.93) 103.93 (33.03) 83.86


Ratio Analysis

3/12 3/13 3/14 3/15 3/16

Valuation Ratios

Price Earnings 16.83 2.67 5.77 9.51 9.84

EV to EBIT 7.30 3.35 4.46 6.12 6.87

EV to EBITDA 5.42 2.75 3.88 5.29 5.97

Price to Sales 0.07 0.06 0.28 0.52 0.77

Price to Book 0.45 0.41 1.47 1.93 2.13

Dividend Yield 0.01 0.04 0.02 0.01 0.01

Profitability Ratios

Gross Margin 0.00 0.00 0.00 0.00 0.00

EBITDA Margin 0.06 0.09 0.12 0.12 0.14

Operating Margin 0.05 0.07 0.10 0.10 0.13

Profit Margin 0.00 0.02 0.05 0.05 0.08

Return on Assets 0.01 0.04 0.08 0.09 0.11

Return on Equity 0.03 0.16 0.30 0.23 0.24

Leverage & Coverage Ratios

Current Ratio 0.82 0.79 0.94 1.21 1.26

Quick Ratio 0.39 0.42 0.48 0.71 0.61

Interest Coverage Ratio (EBIT/I) 1.35 2.49 4.04 5.44 7.88

Tot Debt/Capital 0.66 0.57 0.52 0.31 0.23

Tot Debt/Equity 1.91 1.32 1.10 0.45 0.30

Others

Asset Turnover 1.57 1.63 1.66 1.58 1.43

Accounts Receivable Turnover 8.17 7.78 7.84 7.95 8.58

Accounts Payable Turnover 4.72 5.13 4.95

Inventory Turnover

Effective Tax Rate 0.25 0.28 0.33 0.33 0.31


Shareholding Pattern:

Shareholding Pattern 16-Mar 15-Dec 15-Sep 15-Jun 15-Mar

Promoter and Promoter Group (%)

50.76 50.76 50.76 50.76 50.76

Indian 46.36 46.36 46.36 46.36 46.36

Foreign 4.41 4.41 4.41 4.41 4.41

Institutions (%) 34.06 33.33 26.64 29.43 29.98

FII 29.99 27.17 19.34 21.28 22.28

DII 4.07 6.16 7.3 8.15 7.7

Non Institutions (%) 15.17 15.91 22.6 19.81 19.26

Bodies Corporate NIL NIL 2.38 2.99 3.78

Others 15.17 15.91 20.22 16.81 15.48

Custodians NIL NIL NIL NIL NIL

Total no. of shares (cr.) 4.05 4.05 4.05 4.05 4.05

Institutional Ownership Distribution

Hedge Fund Manager 35.01%

Investment Advisor 17.85%

Corporation 17.21%

Other 14.78%

Others 15.16%


FUTURE PROSPECTS

The Indian Tyre Industry is expected to register a better growth year on year, considering the

optimistic macro-economic conditions and projected growth of automobile industry.

Passenger car, motorcycle and truck/bus are expected to grow by 7-9% which scooter and

small commercial vehicles are expected to register double digits growth in coming years. The

demand of tractor tyres is dependent on season and is also expected to show significant

growth in coming years.

The reduction of prices of key base commodities ( like crude) in the second half of the year

under review, and is yet to be reflected fully. The raw material prices have stabled and may

assist tyre manufacturing companies in maintain operating margins. However, recent

regulatory changes increase in basic import customs duty on natural rubber [raised from 20%

or Rs.30/- per kg(whichever is lower), to 25% or Rs.30/- per kg(whichever is lower), and this

will have an impact on the raw material costs. The impact of the above, will help the

company’s aim is to improve its product mix further by shifting towards the more profitable

product categories, and focus will be on key international geographies and increase

operational efficiency through its ‘Total Quality Management’ initiative to counter changes in

the operating environment. With a constant focus on profitable product categories, market

segments and key international geographies, CEAT is strategically poised to achieve its vision

of being amongst the most profitable companies in India in years to come.

The increasing disposable incomes in the hands of the Indian middle class in recent past has

increased demand of two-wheeler and led to a marked shift towards Passenger segments in

recent years. The trend is likely to further accentuate, going forward. Since tyre sales are

directly related to car sales, both through OEMs and the Replacement market, the tyre

industry will also witness corresponding increase in sales figures.

And with the increased government thrust on road infrastructure development, road

transportation shall get a fillip, leading to greater demand for tyres, as well as increased focus

on agriculture and manufacturing is also expected to boost growth in the Indian economy as

well the automobile sector/tyre industry.


INVESTOR GUIDANCE

One of India’s leading tyre companies, CEAT is committed to the passionate pursuit of

excellance in performance and quality through a range of distinctive products. The

company has launched a number of new products in FY 2014-15, which included

tubeless tyres for 2-Wheelers, new size introduction for compact SUVs and off road

biking tyres. These products have received good responses in their respective markets

and segments and contributed to 27% of the turnover. The dealer network comprises of

3500+ dealers, with 300+ CEAT Franchises (Shoppes & Hubs) and over 250

distributors. The CEAT Shoppe network, an exclusive retail channel of the Company, is

now nearing 200 outlets as compared to 125 plus outlets at the end of 31st March, 2016.

For export markets, the Company has developed tyres tailored to specific export

markets. Further to boost international presence, the Company has focused its

attention in developing certain export markets through the liaison offices set up in

Indonesia and Middle East. These offices have helped the Company to improve sales

by establishing local connect with the dealers.

In the below picture it’s given that % of Sales had increased in Truck and buses from 38%

to 42% and 2/3 wheelers from 22% to 27% and passenger cars as well as LCV had also

increased.


Passenger Segment Trends

Outcome

INVESTOR RATIONAL


Investment Rationale:

CEAT has reduced its debt.

CEAT net profit has surged 30% year on year.

CEAT has huge market capitalization of Rs.3638.08 crore which provide liquidity to the stock price

Last year CEAT has given a return on equity of 32%

Net sales of CEAT have gone up by 15% yoy.

Debt equity of CEAT is 0.37 which is very low for a tyre industry companies

Interest Coverage ratio is 5.33, which shows that CEAT can pay interest on outstanding debt easily

Return on Asset is 9.81% of CEAT which indicates that the company’s management is efficient in

using its assets to generate earnings

CEAT is India’s fastest growing conglomerates with 20000+ employees, presence in 100+ countries

and annual gross revenues of $3 Bn.

Revenue CAGR of 10% over last 5 years

Changing product mix with increased focus towards passenger segments (FY16 revenue

contribution of 39% from 15% in FY11)

~25% of the additional capacity to commence operation in FY16 and expected to be fully ramped

up over 18 months from COD (Commercial Operation Date)

No 1 player in Sri Lanka in terms of market share

Ceat is India’s leading tyre company with over 50 yrs of presence

Buy CEAT at the Support levels of 850 with a target of 1050

https://www.dynamiclevels.com/en/ceat-share-price-forecast

report by: adrian john [email protected] tyres stands out for its superior grip and...

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