CEAT Ltd. recently held an analyst meet where its management shared several important insights about the company's growth trajectory, strategic priorities, and market outlook. These takeaways are especially relevant not only for current CEAT shareholders but also for potential investors evaluating entry points in the tyre segment.
The first major highlight was the company's focus on premiumisation within its Passenger Vehicle (PV) segment. The management sees a strong growth trigger here, especially driven by the rising popularity of SUVs in the domestic market. CEAT believes that the SUV segment is turning into the fastest-growing area within the tyre market, and the company is positioning itself accordingly. To cater to this trend, CEAT is ramping up production of high-end tyres specifically designed for super premium cars. The company has also set a target of capturing 95% of the replacement market for these premium SUV tyres.
On the exports front, the outlook for FY26 appears optimistic. CEAT is witnessing strong demand from multiple international markets including Europe, the Middle East, Asia, and Latin America. This broad-based global demand is expected to be a key growth driver moving forward.
In the two-wheeler and truck/bus radial (TBR) segments, the company has gained market share. Additionally, CEAT gave an encouraging update regarding raw material costs. With crude oil prices weakening, the management expects the benefit of softer raw material prices to start reflecting in the company’s financials from the second quarter onwards.
A significant strategic move by CEAT has been its acquisition of the Camso business. This business, which generates approximately $150 million in revenue, focuses on specialty tyres for bias truck tyres and rubber tracks. The acquisition is seen as a revenue and margin booster, particularly in the off-highway tyres (OHT) and export segments. The management expressed bullish views on the future growth potential from this acquisition.
Brokerage firms are also taking a positive view on CEAT post the analyst meet. Nuvama has set a target price of ₹3,800, CLSA has a target of ₹3,933, and Nomura has maintained an overweight rating on the stock.
Overall, CEAT's management commentary and strategic direction indicate confidence in premiumisation, international expansion, and high-margin segments, with analysts largely endorsing this bullish stance.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. The content is based on publicly available information and expert commentary as of the date of publication. Readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions. The author and the platform do not assume any responsibility for financial losses or gains resulting from the use of this information.
