Latest news with #CEATLtd
Time of India
7 hours ago
- Automotive
- Time of India
Expect double-digit growth in FY26, rural replacement market to continue to drive sales: CEAT
Tyre maker CEAT Ltd expects to maintain a double-digit growth this fiscal with domestic replacement segment, specially from rural markets, to drive sales while direct supplies to automobile makers are likely to be muted, according to company MD & CEO Arnab Banerjee. The company is also waiting and watching the tariff situation in the US, a big growth market but not a significant one right now for it, to decide its future course of expansion in the country, he told PTI. "We have started with a double-digit growth in Q1, which we have maintained last year also. We expect to maintain or accelerate that over the next two to three quarters," he said when asked for the outlook of the remainder of the fiscal. In the first quarter ended June 30, 2025 the company's revenue stood at Rs 3,529.4 crore, up 10.5 per cent year-on-year. As for the growth drivers, Banerjee said the two-wheeler replacement segment in the rural market is expected to do well across segments. "On the replacement side, rural demand should be good because monsoons have been good. So we expect rural demand to be robust. Then adoption of electric vehicles specially scooters etc is going strong," he said. Banerjee further said, "There will be some demand softness in the passenger cars side, which is dependent on larger towns but we are seeing a big shift there also from smaller size tyres to larger size tyres. Value growth could be there, margin growth could be there. In terms of the number of tyres, growth may not be that robust." Truck and bus radial tyres in the commercial vehicles segment will continue "to do decent", he noted. However, on the direct supplies to automakers, he said, " OEM growth in two-wheelers has slowed down and passenger vehicle is low single digit. It is going to continue like that unless there are some big launches which create excitement in the market." Medium and heavy commercial vehicles (M&HCV) could also slow down once the pre-buying before AC cabin regulation comes in (from October 1 this year), he said, adding "it may slow down a little bit. So, on the OEM side, slowdown is expected". When asked about the impact of Trump tariff uncertainty, Banerjee said, "The impact on our international business is low because our stakes are low in the US. Materially it is not significant but it is a big growth market for us." The US market accounts for about 3 per cent of the company's total sales. "We are waiting and watching...," he said, adding CEAT would wait for the tariff situation to settle down to plan its future growth strategy in the US. Asked if the company would look at local manufacturing in the US, he said, "We have not thought that far as yet but we are just waiting for the tariff situation (to settle down) and how the pricing will move in the US." Noting that there will be inflation on imported tyres, Banerjee said the US is hugely dependent on imported tyre, not only from India but from various countries. About the European market, he said Q1 was not good as distributors and channels were not stocking due to global geopolitical uncertainty. "However, for Q2 we have good order visibility, more of a seasonal offtake...Q2 order base is very good. Seasonal offtake is very good and if we execute it well, it will be good and from there we will see what happens in Q3 and Q4," Banerjee noted.
Business Upturn
12 hours ago
- Automotive
- Business Upturn
Why are CEAT shares down over 6% today? Know More
By Aditya Bhagchandani Published on July 21, 2025, 09:40 IST Shares of CEAT Ltd. fell more than 6% on Monday, trading at ₹3,575, down from the previous close of ₹3,827.30, after the company reported a 28% decline in net profit for the first quarter of FY26, despite solid revenue growth. The tyre manufacturer posted a net profit of ₹112 crore for the June quarter, compared to ₹154 crore in the same period last year. The sharp drop in profit came as margins declined due to higher marketing spends, even as revenue grew. Revenue for Q1 FY26 rose 10.5% year-on-year to ₹3,529 crore, supported by strong demand in the OEM and replacement segments. EBITDA grew marginally by 1.3% to ₹387 crore, while EBITDA margin slipped to 11% from 12% in Q1 FY25. Domestic demand remained healthy with robust growth in key segments, though international business was flat amid global macroeconomic challenges. Expansion and outlook CEAT also announced a ₹450 crore capex plan to expand its Chennai plant's capacity by about 35%, particularly in the Passenger Car Utility Vehicle (PCUV) segment. The project is expected to be completed by the end of FY27. Managing Director & CEO Arnab Banerjee commented, 'We continue to grow at a strong pace driven by OEM and replacement segments. Looking ahead, we are well-positioned to benefit from premiumisation and electrification trends.' Banerjee has been reappointed for an additional two-year term starting April 2026, subject to shareholder approval. CFO Kumar Subbiah noted that despite the marketing-heavy quarter, cash flow management helped reduce gross debt by ₹100 crore during the period. The stock's sharp decline today reflects investor concerns over falling profitability and margin pressures, even as the company charts its growth plans. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
a day ago
- Automotive
- Time of India
Expect double-digit growth in FY26, rural replacement market to continue to drive sales: CEAT
Tyre maker CEAT Ltd expects to maintain a double-digit growth this fiscal with domestic replacement segment, specially from rural markets, to drive sales while direct supplies to automobile makers are likely to be muted, according to company MD & CEO Arnab Banerjee . The company is also waiting and watching the tariff situation in the US, a big growth market but not a significant one right now for it, to decide its future course of expansion in the country, he told PTI. "We have started with a double-digit growth in Q1, which we have maintained last year also. We expect to maintain or accelerate that over the next two to three quarters," he said when asked for the outlook of the remainder of the fiscal. In the first quarter ended June 30, 2025 the company's revenue stood at Rs 3,529.4 crore, up 10.5 per cent year-on-year. As for the growth drivers, Banerjee said the two-wheeler replacement segment in the rural market is expected to do well across segments. "On the replacement side, rural demand should be good because monsoons have been good. So we expect rural demand to be robust. Then adoption of electric vehicles specially scooters etc is going strong," he said. Banerjee further said, "There will be some demand softness in the passenger cars side, which is dependent on larger towns but we are seeing a big shift there also from smaller size tyres to larger size tyres. Value growth could be there, margin growth could be there. In terms of the number of tyres, growth may not be that robust." Truck and bus radial tyres in the commercial vehicles segment will continue "to do decent", he noted. However, on the direct supplies to automakers, he said, "OEM growth in two-wheelers has slowed down and passenger vehicle is low single digit. It is going to continue like that unless there are some big launches which create excitement in the market." Medium and heavy commercial vehicles (M&HCV) could also slow down once the pre-buying before AC cabin regulation comes in (from October 1 this year), he said, adding "it may slow down a little bit. So, on the OEM side, slowdown is expected". When asked about the impact of Trump tariff uncertainty, Banerjee said, "The impact on our international business is low because our stakes are low in the US. Materially it is not significant but it is a big growth market for us." The US market accounts for about 3 per cent of the company's total sales. "We are waiting and watching...," he said, adding CEAT would wait for the tariff situation to settle down to plan its future growth strategy in the US. Asked if the company would look at local manufacturing in the US, he said, "We have not thought that far as yet but we are just waiting for the tariff situation (to settle down) and how the pricing will move in the US." Noting that there will be inflation on imported tyres, Banerjee said the US is hugely dependent on imported tyre, not only from India but from various countries. About the European market, he said Q1 was not good as distributors and channels were not stocking due to global geopolitical uncertainty. "However, for Q2 we have good order visibility, more of a seasonal offtake...Q2 order base is very good. Seasonal offtake is very good and if we execute it well, it will be good and from there we will see what happens in Q3 and Q4," Banerjee noted.
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Business Standard
25-06-2025
- Business
- Business Standard
Motilal Oswal top 5 quant strategy stocks for July 2025: Full list here
Quant Multi-Factor Watchlist - July 2025 Navigating the dynamic stock market demands a robust strategy. Multi-factor investing combines multiple proven metrics to identify stocks with strong potential, filtering out short-term volatility and focusing on consistent return drivers for the long term. This multi-factor ranking approach helps us shortlist the best tactical bets within the MOFSL universe with a 'Buy' rating. CATCH STOCK MARKET UPDATES TODAY LIVE What is Multi-Factor Investing? Multi-factor investing integrates several investment styles into a single strategy, selecting stocks that excel in: Value: Stocks trading below their intrinsic worth. Quality: Companies with strong financial fundamentals. Momentum: Stocks with positive price trends. Earnings Surprise: Stocks with recent upward revisions in earnings estimates. This approach enhances consistency and reduces the risk of chasing fleeting trends. Motilal Oswal Financial Services Ltd. (MOFSL) employs an in-house Quant model to rank stocks within its research universe, selecting only those with a Buy rating. Top 5 stocks in Quant Watchlist - July 2025: The following stocks, all carrying a Buy rating from MOFSL analysts, rank highest in our Quant model, balancing value, quality, momentum, and earnings surprise: CEAT Ltd (CEATLTD): Excels in quality with recent earnings upgrades, signalling strong analyst confidence in future profitability. Moderate momentum and value scores suggest steady growth potential. Hindustan Petroleum Corp (HINDPETRO): A standout for its attractive valuation and strong earnings surprise, with recent upward revisions in earnings estimates. Emerging momentum indicates growing market traction. NMDC Ltd (NMDC): A well-rounded pick with high scores in quality, value, and earnings surprise. Despite lower momentum, its robust fundamentals and analyst optimism make it a strong contender. PNB Housing Finance (PNBHOUSING): A high-momentum stock with a significant earnings surprise, reflecting analyst expectations of improved financials. Though quality scores are lower, rising investor sentiment fuels interest. Union Bank of India (UNIONBANK): A balanced choice with solid value, rising momentum, and positive earnings surprise. Improving financial estimates position this PSU bank as a compelling pick. These stocks represent the top-ranked opportunities within the MOFSL universe, leveraging our multi-factor approach to deliver consistent, high-potential investment ideas for July 2025.
Mint
28-05-2025
- Automotive
- Mint
Trump tariff threat: CEAT figures out ways to salvage its $225mn Camso acquisition
NEW DELHI : Tyre maker CEAT Ltd will shift production for the US market to its Indian facilities from Sri Lanka to salvage its biggest acquisition, Canadian tyre brand Camso, in case US President Donald Trump decides to go ahead with his plan to impose higher reciprocal tariffs. 'We are in talks with the Sri Lankan government. There is hope that the situation will be resolved. However, we have our mitigation strategies in place in case trade deals do not materialise," Arnab Banerjee, managing director and chief executive, CEAT, told Mint. India's fourth-largest tyre player acquired Camso, which gets nearly one-third of its business from the US, in December 2024 for $225 million (about ₹1,900 crore) in an all-cash deal from France-based Michelin group. In 2023, Camso posted a revenue of $213 million. Also Read: In US-China trade war, Indian tyre makers could be collateral damage The acquisition gave the RPG Group flagship control over its two manufacturing facilities in Sri Lanka and over 40 global OEMs, including those in the US. However, Trump's 2 April announcement to impose 44% reciprocal tariffs on Sri Lanka soured the deal for the Mumbai-based company. Though the US administration has paused the implementation of higher tariffs till 9 July, the impending threat has pushed the company back to the drawing board. 'At present, we do not have much exposure to the US. However, the country is an identified growth market for us," Banerjee added. The threat Analysts have warned that the Camso acquisition will become a problem for the company if the Trump administration pursues the plan, and it will be key to watch CEAT's mitigation strategies. The proposed tariffs will increase import costs for US tyre customers, which can shift demand to manufacturers with plants in the North American region or those in countries that strike trade deals with the US. 'If the tariff situation prevails, there can be significant risk to 15% of the overall volumes (US bias tires) for the company (Camso)," wrote Rishi Vora of Kotak Institutional Equities, in a 1 May note. 'In that case, the rationale for the transaction becomes difficult to justify." Also Read: Rubber barons: These small caps make a fortune from discarded tyres. Should you invest? In 2024-2025, the tyre maker's net profit declined by 26% to ₹471 crore, while its revenue grew by 10% to ₹13,217 crore. Its share price has risen by 17.88% since the beginning of 2025, as against a 2% rise in the Nifty Auto. The contingency plan The North American market is a key destination for the Indian tyre industry, accounting for about one-fifth of its nearly $3 billion exports in 2023-24. Europe and Latin America are also key destinations. In 2024-25, CEAT got about 19% of its ₹13,217 crore revenue from exports, with its major markets in Latin America and Europe. However, the management set its sights on the world's largest tyre market in 2024. 'CEAT has entered twelve new geographies in the fiscal year with plans to enter the world's largest tyre market, the US, in 2025. This expansion underscores our capability to produce the best-in-class products to meet global requirements," the company's vice chairman, Anant Goenka, said in his letter to shareholders in 2024. Now, to salvage that ambition, one of its mitigation strategies involves the company shifting the production of tyres for the US market from Camso's plants in Sri Lanka to its Indian facilities, while the Sri Lankan plants will produce tyres for the European market. As of now, India, where CEAT has six manufacturing plants with a capacity of producing more than 140,000 tyres every day, stands to attract reciprocal tariffs of 26% on the goods it exports to the US. Tyre exports Overall, the international markets constitute a large share of India's top tyre makers. While Apollo Tyres Ltd earned around 13% of its revenue from exports in 2023-24, international sales accounted for nearly three-fourths of Balkrishna Industries Ltd's top line. India's largest tyre player, MRF Ltd, earned about 8% of its revenue from exports. For the broader auto ancillary sector, including auto parts makers, exports to the US contributed one-third of the total $21 billion exports in 2023-24. Also Read: Can Camso transform tyre maker Ceat into a high-margin business? Sona Comstar, which gets more than 40% of its revenue from the North American market, highlighted in its earnings call on 30 April that 3% of its revenue can be impacted due to Trump tariffs.
