CEAT Ltd

NSE: CEATLTD BSE: 500878

₹3563.40

(0.69%)

Sun, 23 Aug 2026, 08:37 am

Market Cap (in Cr)14405.29

PE Ratio24.42

Dividend0.98

Consumer Durables

Automotive Aftermarket

24.5K

CEAT Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are well covered by earnings (4.8x coverage).
Dividends after 3 years are expected to be thoroughly covered by earnings (7.1x coverage).
CEAT's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
CEAT's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

CEAT's earnings growth is expected to exceed the low risk savings rate of 7.2%.
CEAT's earnings are expected to increase by more than the low risk growth rate in 3 years time.
Performance (ROE) is expected to be above the current IN Auto Components industry average.
An improvement in CEAT's performance (ROE) is expected over the next 3 years.

Cons

Cash flow for CEAT is expected to decrease over the next 2 years.
CEAT's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
CEAT's earnings growth is positive but not above the India market average.
CEAT's earnings are expected to decrease over the next year.
CEAT's net income is expected to increase but not above the 50% threshold in 2 years time.
CEAT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
CEAT's revenue is expected to increase but not above the 50% threshold in 2 years time.
CEAT's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
CEAT's revenue growth is positive but not above the India market average.

Pros

CEAT is profitable, therefore cash runway is not a concern.
CEAT is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (49.6%, greater than 20% of total debt).

Cons

CEAT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Debt is not covered by short term assets, assets are 0.9x debt.
CEAT's long term commitments exceed its cash and other short term assets.
The level of debt compared to net worth has increased over the past 5 years (45.2% vs 65.8% today).
Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).
CEAT's level of debt (65.8%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

Pros

The tenure for the CEAT board of directors is about average.
Anant's compensation has been consistent with company performance over the past year, both up more than 20%.
More shares have been bought than sold by CEAT individual insiders in the past 3 months.
The tenure for the CEAT management team is about average.

Cons

Anant's remuneration is higher than average for companies of similar size in India.

Pros

Cons

Pros

Cons

CEAT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
CEAT's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
CEAT used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
CEAT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
CEAT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
CEAT's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

Pros

CEATLTD outperformed the Auto Components industry which returned -22.4% over the past year.
CEATLTD outperformed the Market in India which returned -14.5% over the past year.
NSEI:CEATLTD is up 29.1% outperforming the Auto Components industry which returned 13.2% over the past month.
NSEI:CEATLTD is up 29.1% outperforming the market in India which returned 8% over the past month.

Cons

CEAT's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
CEAT's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
CEAT is overvalued based on assets compared to the IN Auto Components industry average.
CEAT is poor value based on expected growth next year.
CEAT is overvalued based on earnings compared to the IN Auto Components industry average.
CEAT is overvalued based on earnings compared to the India market.