CEAT Limited, the well-known Indian tire manufacturing company, has been in the news lately. As a major participant in the Indian tire industry, CEAT’s products are widely used in various vehicles, including motorcycles and airplanes. Apart from its products, investors are curious about CEAT’s stock price and its viability as an investment.
In this article, we will examine CEAT’s share price target for the period between 2023 and 2030 to determine its suitability as an investment opportunity.
We will also discuss CEAT’s recent announcement of being selected as the Strategic Timeout Partner for the Women’s Premier League, which further cements the company’s position in the industry. So, let’s dive in and take a closer look at CEAT’s future prospects as an investment opportunity.
Latest news about CEAT
➤CEAT has etched a remarkable historical achievement by becoming the foremost tire manufacturer globally to secure the prestigious Deming Grand Prize.
➤CEAT’s Vice Chairman, Anant Goenka, has been appointed as the Vice Chairman of RPG Group while continuing to hold his roles at CEAT.
➤Ceat, the prominent tire manufacturer, is bolstering its aftermarket business by capitalizing on its acquisition of Tyresnmore.com, aiming to provide comprehensive automotive solutions and doorstep services to customers, with impressive post-pandemic growth and the promise of transforming the auto aftermarket experience in India.
One can buy CEAT shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| October 2023 | ₹2,350.70 | ₹2,137.00 |
| November 2023 | ₹2,304.61 | ₹2,095.10 |
| December 2023 | ₹2,380.66 | ₹2,164.24 |
In October 2023, CEAT’s share price is projected to exhibit a trading range with an anticipated maximum price of ₹2,350.70 and a minimum of ₹2,137.00.
Looking ahead to November 2023, the stock is expected to maintain its stability, with a maximum forecasted price of ₹2,304.61 and a minimum of ₹2,095.10.
As we approach December 2023, the prospects for CEAT shareholders seem promising, as the share price is estimated to reach a maximum of ₹2,380.66 and a minimum of ₹2,164.24. These projections provide investors with a glimpse into the potential performance of CEAT’s shares, offering a valuable insight into the stock’s expected price movements in the final quarter of the year.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹2,429.24 | ₹2,112.39 |
| February 2024 | ₹2,478.82 | ₹2,155.50 |
| March 2024 | ₹2,529.41 | ₹2,199.49 |
| April 2024 | ₹2,455.74 | ₹2,135.42 |
| May 2024 | ₹2,419.45 | ₹2,103.87 |
| June 2024 | ₹2,506.55 | ₹2,179.60 |
| July 2024 | ₹2,481.48 | ₹2,157.81 |
| August 2024 | ₹2,580.74 | ₹2,244.12 |
| September 2024 | ₹2,683.97 | ₹2,333.89 |
| October 2024 | ₹2,631.34 | ₹2,288.12 |
| November 2024 | ₹2,710.28 | ₹2,356.77 |
| December 2024 | ₹2,778.04 | ₹2,415.69 |
The provided data outlines the expected maximum and minimum share prices for CEAT in the year 2024. These projections give investors an idea of the potential price fluctuations and trends they can anticipate in CEAT’s stock throughout the year.
In January 2024, the maximum projected share price is ₹2,429.24, while the minimum is ₹2,112.39. This means that investors can expect the stock to trade within this range during that month.
The trend continues into the following months, with estimated maximum and minimum prices for each month. This data helps investors plan and strategize their investments, understanding the potential highs and lows of the stock.
By the end of the year, in December 2024, the maximum projected share price is ₹2,778.04, and the minimum is ₹2,415.69, suggesting that the stock is expected to experience growth over the course of the year.
These projections serve as valuable insights for investors, allowing them to make informed decisions and understand the expected performance of CEAT’s stock in the coming year. However, it’s important to note that these are predictions and actual market conditions may vary.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹2,833.60 | ₹2,179.69 |
| February 2025 | ₹2,906.26 | ₹2,235.58 |
| March 2025 | ₹3,019.60 | ₹2,322.77 |
| April 2025 | ₹2,960.39 | ₹2,277.23 |
| May 2025 | ₹2,874.17 | ₹2,210.90 |
| June 2025 | ₹3,003.51 | ₹2,310.39 |
| July 2025 | ₹2,944.61 | ₹2,265.09 |
| August 2025 | ₹3,035.68 | ₹2,335.14 |
| September 2025 | ₹3,141.93 | ₹2,416.87 |
| October 2025 | ₹3,223.62 | ₹2,479.71 |
| November 2025 | ₹3,304.21 | ₹2,541.70 |
| December 2025 | ₹3,386.82 | ₹2,605.25 |
The data for CEAT’s projected share prices in 2025 illustrates a dynamic and potentially lucrative year for investors.
Starting in January, the stock is expected to range between a maximum price of ₹2,833.60 and a minimum of ₹2,179.69. The trend continues with steady growth throughout the year.
In December 2025, the share price is predicted to reach a maximum of ₹3,386.82 and a minimum of ₹2,605.25. These projections signify an upward trajectory for CEAT’s stock, indicating consistent growth and an optimistic outlook.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹3,556.16 | ₹2,489.31 |
| 2027 | ₹3,911.78 | ₹2,738.24 |
| 2028 | ₹5,476.49 | ₹2,738.24 |
| 2029 | ₹4,741.55 | ₹2,370.77 |
| 2030 | ₹6,164.01 | ₹4,314.81 |
The projected share prices for CEAT from 2026 to 2030 indicate a substantial growth trajectory. In 2026, the stock is expected to trade within a range of ₹2,489.31 as the minimum and ₹3,556.16 as the maximum. The following years, particularly 2027 and 2028, exhibit significant increases, with the maximum share price reaching ₹3,911.78 and ₹5,476.49, respectively, in these years. These estimates signify an ascending trend in CEAT’s stock performance.
As we look ahead to 2030, the projections are notably bullish, with the maximum share price expected to reach ₹6,164.01 and a minimum of ₹4,314.81. These forecasts offer investors a promising outlook for the future of CEAT’s stock, indicating the potential for substantial returns. Nevertheless, it’s essential to keep in mind that these are projections, and actual market conditions may be influenced by various economic factors.
Financial Condition of CEAT: Last 5 years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 6,985 | 6,779 | 7,610 | 9,363 | 11,315 |
| Expenses (Rs. Crores) | 6,332 | 6,052 | 6,617 | 8,643 | 10,341 |
| Operating Profit (Rs. Crores) | 652 | 727 | 993 | 721 | 974 |
| OPM (%) | 9% | 11% | 13% | 8% | 9% |
| Other Income (Rs. Crores) | 10 | 8 | 10 | 17 | -8 |
| Interest (Rs. Crores) | 93 | 154 | 179 | 207 | 242 |
| Depreciation (Rs. Crores) | 193 | 277 | 340 | 435 | 469 |
| Profit before Tax (Rs. Crores) | 376 | 304 | 484 | 95 | 254 |
| Tax % | 33% | 24% | 11% | 26% | 28% |
| Net Profit (Rs. Crores) | 251 | 230 | 432 | 71 | 182 |
| EPS (in Rs.) | 62.35 | 57.17 | 106.81 | 17.60 | 46.02 |
| Dividend Payout (%) | 19% | 21% | 17% | 17% | 26% |
Over the last five years, CEAT has experienced significant fluctuations in its financial performance. Beginning in March 2019, the company reported sales of Rs. 6,985 crores, which increased to Rs. 11,315 crores by March 2023, reflecting a substantial growth trajectory. However, this growth was accompanied by rising expenses, which escalated from Rs. 6,332 crores to Rs. 10,341 crores during the same period.
Despite the increase in expenses, CEAT managed to maintain a relatively stable operating profit, with an operating profit margin (OPM) fluctuating between 8% and 13%. Other income, although positive in most years, showed a significant dip to -8 crores in March 2023.
One notable trend is the increasing interest expenses, reaching Rs. 242 crores in March 2023, indicating potential financing challenges. Additionally, depreciation costs also increased steadily over the years, hitting Rs. 469 crores in March 2023.
The profit before tax exhibited volatility, with a notable dip in March 2022, followed by a partial recovery in March 2023. The tax percentage ranged from 11% to 33%, affecting the net profit, which fluctuated from Rs. 71 crores to Rs. 432 crores.
Earnings per share (EPS) followed a similar roller-coaster pattern, reflecting the company’s financial performance. The dividend payout percentage increased from 19% in March 2019 to 26% in March 2023.
CEAT’s financial condition over these five years shows the challenges and opportunities the company faced in a competitive market, with revenue growth, cost management, and profitability being key areas of focus for its financial strategy.
Motilal Oswal has a positive outlook on CEAT and has given it a “buy” rating, with a target price of Rs 3000.
FAQS
It is anticipated that CEAT per share price will increase to ₹2,380.66 by the end of 2023.
Can CEAT be considered a reputable brand?
Yes, CEAT tyres can be considered an ideal option for those seeking a budget-friendly high-performance tyre for both urban and highway driving purposes.
What is the current PE Ratio of CEAT?
The Price-to-Earnings (P/E) ratio of CEAT is 25.9 based on the current market price of ₹2,137 and the market capitalization of ₹8,643 crores.
What is CEAT’s recent trend in revenue growth, and how has it impacted the company’s profitability?
CEAT has experienced a consistent increase in revenue over the past five years, reaching ₹11,315 crores in March 2023. However, profitability has shown some fluctuations due to rising expenses and varying tax percentages.
How has CEAT’s dividend payout evolved over the last five years, and what does its current dividend yield of 0.56% signify for investors?
CEAT’s dividend payout percentage has shown a gradual increase, reaching 26% in March 2023. The current dividend yield of 0.56% suggests that while the dividend payout is relatively modest, the company is focusing on reinvesting in growth opportunities.
Also read:
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- Granules India Share Price Target 2023 to 2030: Can it touch 500 INR by 2025?
- JK Tyre and Industries Share Price Target 2023 to 2030: Can it touch 500 INR?
Conclusion
In conclusion, CEAT Tyres has shown steady income growth over the past five years, with a revenue growth of 48.9% and a PAT growth of 80.2%. Despite facing challenges in the pandemic year, CEAT’s profit growth has bounced back with a growth of 329.3% in the fiscal year 2021-22. The company’s strategic investments in R&D and manufacturing facilities are expected to boost its growth in the coming years. With a positive outlook on the company’s financials, CEAT shares seem to be a good buy for investors. As of May , 2023, the maximum price target for CEAT shares by 2030 is ₹10,680.79 and the minimum price target is ₹2,136.16, as per the available data. So, investors who want to reap long-term gains can consider adding CEAT shares to their portfolio. As mentioned before, it is projected to fall for a bit making it easy for investors to invest in the share to enjoy long term gains.
What did we learn?
- 1 Latest news about CEAT
- 2 How to buy CEAT shares?
- 3 Share Price Prediction of CEAT: 2023 to 2030
- 4 Financial Condition of CEAT: Last 5 years
- 5 Motilal Oswal On CEAT Share Price Target
- 6 FAQS
- 6.1 Will the share price of CEAT increase in 2023?
- 6.2 Can CEAT be considered a reputable brand?
- 6.3 What is the current PE Ratio of CEAT?
- 6.4 What is CEAT’s recent trend in revenue growth, and how has it impacted the company’s profitability?
- 6.5 How has CEAT’s dividend payout evolved over the last five years, and what does its current dividend yield of 0.56% signify for investors?
- 7 Also read:
- 8 Conclusion
