Espresso shot of the day – CEAT Ltd up by 9.16 percent

EspressoLogy

Espresso shot of the day – CEAT Ltd up by 9.16 percent

January 21, 2023
Espresso shot of the day – CEAT Ltd up by 9.16 percent

CEAT LTD 1431.05  (+9.16%)   BSE – INE482A01020| 21st JAN 2021

Espresso Chart Binge

CEAT was founded in 1958 and is one of India’s leading tyre brands and the flagship company of the RPG Group. Driven by the purpose of helping the world move safely and smartly, CEAT provides world-class products and services across 100 plus countries.

Recent Drivers

  • CEAT reported Net Sales at Rs 2,221.25 crores in Dec 2020. Up 26.08% from Rs 1,761.77 crores in Dec 2019.
  • Quarterly Net Profit at Rs 132.14 crores in Dec 2020 | Up 150.31% from Rs 52.79 crores in Dec 2019.
  • CEAT has been adding capacity at its plants in Halol, Chennai and Nagpur over the past one and a half years.
  • CEAT will use the increase in capex to add more capacity at its factories and address the sustained surge in demand since the lockdown was eased. The company is soon to hike its capital expenditure (capex) for the coming fiscal year by 40% to Rs 700 crores.
  • The tyre industry is facing a robust demand, led by a strong demand in the replacement market, and growth in the last quarter of this fiscal year will also be largely driven by replacement demand.
  • In the Dec quarter, CEAT partnered with Nissan for the Magnite compact SUV and with Hyundai for the Elite i20 hatchback as the official tyre supplier. It also bagged a contract to supply tyres for the Royal Enfield Meteor.
  • In the past, CEAT has associated with Royal Enfield by supplying tyres for Bullet Classic 350, Bullet Standard/Electra, Classic 500 and the Himalayan models of its bikes.
  • CEAT has introduced a very-high flexion (VF) version of its Torquemax AG tire. VF technology provides 40% higher load carrying capacity than standard radials.
  • CEAT has associated with Jamshedpur FC as the official tyre partner for the Indian Super League 2020-21. The association is CEAT’s first partnership with an Indian football team.
  • CEAT carried out a price hike of around 3% in Dec and a further 3% hike is expected this quarter.
(Sources: Moneycontrol, BSE, Financial Express, Economic Times, Modern Tire Dealer, Business Line, Live Mint)

Technical Force*

  • S&P BSE 500 month till date gain up by  4.38% | S&P AUTO month till date gain up by 12.24%
  • Traded on new 52-week high: 1478.90
  • Spurt in volume by more than 4.52 times compared to previous volume
  • Stock price has jumped more than 100% in 1 year low level – 600, Mar 24, 2020
  • Daily RSI (14) is in overbought territory for 2 periods, RSI crossed above central line 14 periods ago
  • 52-week high – 1478.90 | 52-week low – 601.50


Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

1999.23

1624.12

1351.73

976.62

704.23

329.12

56.73

-

Fibonacci Pivot

1624.12

1376.77

1223.96

1125.54

976.62

827.69

729.27

57646

329.12


Today’s Close

1431.05

SMA

BSE

10 DAY

1244.00

20 DAY

1173.08

50 DAY

1147.58

200 DAY

964.50


Some Key Ratios (Source: BSE)

Market Cap: 5,788.61 crores

PE: 17.08

OPM%: 12.76

ROE%: 11.70

Prev. Close: 1311.00


* Chart And Technical Force data taken from the Binge desktop app.

The scope and usability of this information/data is time-sensitive and market-based, and as such the same may become outdated for the investment decisions of clients, for which Sharekhan comtrade bears no responsibility. References to securities do not constitute a recommendation to buy, sell or hold such securities. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document and should consult his own advisors to determine the merits and risks of such an investment. Sharekhan Comtrade Private Limited is under no obligation to update the information in this document from time-to-time.

Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.