Buy Ceat, target price Rs 1475: Edelweiss

Edelweiss has buy call on Ceat with a target price of Rs 1475. The current market price of Ceat is Rs 1381.6. Time period given by analyst is Intra Day when Ceat price can reach defined target.

Ceat Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 5586.16 Crore) operating in Tyres sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2292.89 Crore, up 3.04 % from last quarter Total Income of Rs 2225.30 Crore and up 45.40 % from last year same quarter Total Income of Rs 1576.92 Crore. Company reported net profit after tax of Rs 145.20 Crore in latest quarter.


Investment Rationale
After a massive underperformance, Ceat has started showing some strength after making a base around 1300 – 1280 levels. The stock has broken above its previous swing top after the base formation. Volumes have also increased at breakout.

Promoter/FII Holdings
Promoters held 46.8 per cent stake in the company as of March 31, 2021, while FIIs held 27 per cent, DIIs 13.7 per cent and public and others 12.6 per cent.