By Aditya Raghunath
Investing.com -- Tyre maker CEAT Ltd (NS: CEAT ) reported its numbers for the March 2021 quarter, and they were below estimates. Consolidated total income was Rs 2292.89 crore, up 3.04 % from December 2020’s income of Rs 2225.30 crore, and up 45.4% from March 2020’s income of Rs 1576.92 crore. For March 2021, CEAT reported a net profit after tax of Rs 145.20 crore.
After its results, brokerages are divided on what to do with the stock. The stock dropped 4.08% to close at Rs 1,285.5 today. Motilal Oswal (NS: MOFS ) has recommended a ‘buy’ on the stock with a target of Rs 1,700. It has cut its FY22 and FY23 estimates but believes that the stock is still a good buy.
Prabhudas Lilladher said that the numbers missed estimates and the outlook remains weak in Q1 FY22. However, it is positive that the company will continue to gain in the passenger vehicles and trucks segment. The brokerage has given an ‘accumulate rating’ call for the stock and has revised its price down to Rs 1,472 from Rs 1,667 earlier.
Nomura has a ‘reduce’ call on CEAT and has cut down its price target to Rs 1,207 from Rs 1,491. It said, “As lockdown restrictions ease, demand should recover; however, for the replacement industry over FY22-24F, growth is likely to be around 5-6% for PV/2W due to a flattish OE industry in the past.”
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