CEAT's FY25 revenue growth seen in single digits, brokerages say

JK Tyre & Industries

05/03/2024 08:22

** Tyre maker CEAT  CEAT.NS  to report single-digit
percentage revenue growth in FY25, helped by growth across
segments such as OEM and export - Nuvama
    ** CEAT last down 0.3% at 2,885 rupees, trading between
gains of 2.6% and loss of 1.2% from last close
    ** Adds CEAT focusing on EV tyres with platform-wins in
two-wheeler, passenger vehicle and commercial vehicle segments
    ** Stable growth outlook for domestic OEMs, increase in
replacement demand and softening raw material prices, should
lead to margin expansion in FY24 - Motilal Oswal
    ** Nomura expects CEAT to report ~8% revenue CAGR over
FY24-26 led by double-digit growth in exports, but partly offset
by single-digit growth in OEMs and replacement
    ** Avg recommendation on CEAT and Apollo Tyres  APLO.NS  is
'buy', JK Tyre  JKIN.NS  has 'hold', MRF  MRF.NS  rated 'sell' -
LSEG data
    ** Median target price on CEAT is 2,980 rupees - LSEG 
    ** CEAT up ~19% YTD vs Nifty auto index's  .NIFTYAUTO  13.5%
rise

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))