CEAT (CEATLTD)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at CEAT at ₹3,688.80, with a market cap of ₹14,921 Cr. The business has a 5-year revenue CAGR of 14.29%, and latest quarter sales were ₹4,157 Cr, so the top line is moving. But net profit in the latest quarter was ₹155 Cr, while profit growth is -27.60%. That tells me sales growth is not flowing to the bottom line. As Graham would ask, is the price paid for those sales sensible? The P/E is 25.25 and P/B is 2.54, with book value ₹1,454.52. The Graham Number is ₹1,822.63, giving a margin of safety of -93.75%; DCF intrinsic value is ₹2,243.56. On those conservative estimates, the stock is richly valued, not cheap. The EV/EBITDA of 88.75 also demands explanation and caution. Business quality is mixed: ROCE 15.40% and ROE 12.67% are decent but not extraordinary. Debt to equity is 0.65, not alarming, and Altman Z-score 3.02 suggests financial distress risk is low. Piotroski F-score 8/9 is a real positive, suggesting accounting and operating momentum are strong despite profit decline. Free cash flow is ₹170 Cr, positive but modest against ₹14,921 Cr market cap. Promoter holding of 47.21% aligns interests, and dividend yield 0.95% is small. CEAT looks like a cyclical tyre business with moderate financial health and a narrow, if any, moat. At this price, I would wait for either a lower valuation or clear profit recovery. The stock is a watchlist candidate, not a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer