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
➤In order to launch and supply the Comet EV with the sophisticated tyre technology necessary in electric vehicles to boost economy and passenger comfort, CEAT has announced its cooperation with MG Motor India. The relationship with MG Motor India for the Comet, according to Arnab Banerjee, MD & CEO, CEAT, highlights the company’s competence in electric vehicles, and the tyre manufacturer is certain that the tyres will increase this vehicle’s performance and safety.
➤ The largest agri-food event in Northern Ireland, Balmoral Show 2023, included agricultural tyres from CEAT Specialty, a top tyre manufacturer. The tournament was held from May 10 to May 13 at Balmoral Park in Lisburn. A variety of agricultural goods, including Torquemax VF, Yieldmax, Farmax R70, Farmax R65, MPT 800, Floatmax RT, and Floatmax FT, were on display at CEAT Specialty.
➤The Board of Directors has “recommended final dividend Rs. 12/- (Rupees Twelve only), i.e. 120% (One hundred and twenty percent) per equity share of face value of Rs. 10 (Rupees Ten only) each fully paid up, for the financial year ended March 31, 2023, subject to the approval of the members at ensuing Annual General Meeting, which will be paid/dispatched within 30 days of its declaration thereat,” said Ceat in a stock exchange filing today.
➤The March quarter’s consolidated net profit for tire manufacturer CEAT Ltd increased by more than five times to Rs 132.42 crore, thanks to more sales and decreased raw material costs. According to a regulatory filing by CEAT Ltd, the business reported a net profit of Rs 25.43 crore for the same period a year prior. According to the statement, the total income from operations for the fourth quarter was Rs 2,874.82 crore as opposed to Rs 2,591.99 crore for the same time in FY22. In comparison to the same time last year, total costs were higher at Rs 2,698.88 crore as opposed to Rs 2,570.66 crore. However, compared to Rs 1,768.47 crore a year earlier, the cost of raw materials utilized was lower at Rs 1,661.18 crore. Operating income increased to Rs 11,314.88 crore in FY23 from Rs 9,363.41 crore in FY22.
You can buy CEAT shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2023 | ₹2,460.42 | ₹1,250.86 |
| June 2023 | ₹2,578.50 | ₹1,214.23 |
| July 2023 | ₹8,894.20 | ₹1,457.08 |
| August 2023 | ₹2,083.62 | ₹1,602.78 |
| September 2023 | ₹2,187.80 | ₹1,682.92 |
| October 2023 | ₹2,083.62 | ₹1,602.78 |
| November 2023 | ₹2,291.98 | ₹1,763.06 |
| December 2023 | ₹2,567.02 | ₹1,974.63 |
The overall trend appears to be bullish, with the share price showing an upward trend towards the end of the year. The growth percentage between the minimum and maximum prices also suggests a potential uptrend of around 130%, which could be an attractive opportunity for investors looking to capitalize on potential gains in the tire manufacturing sector. According to indicators such as Stochastic RSI,RSI and trend line, the stock is expected to fall for a bit and then go up again more than the current position.
It is worth noting that share price predictions are not always accurate, and various internal and external factors could influence the actual stock price performance. Nevertheless, investors should keep an eye on CEAT’s stock price and monitor any developments that could affect its future prospects.
Overall, the table suggests that CEAT’s stock price could experience significant growth in 2023, but investors should approach this prediction with caution and conduct their due diligence before making any investment decisions.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹2,702.13 | ₹2,078.56 |
| February 2024 | ₹3,036.10 | ₹2,530.08 |
| March 2024 | ₹3,195.89 | ₹2,598.29 |
| April 2024 | ₹2,905.36 | ₹2,234.89 |
| May 2024 | ₹2,421.13 | ₹1,862.41 |
| June 2024 | ₹2,905.36 | ₹2,234.89 |
| July 2024 | ₹2,469.55 | ₹1,914.38 |
| August 2024 | ₹2,716.51 | ₹2,155.96 |
| September 2024 | ₹2,852.33 | ₹2,194.10 |
| October 2024 | ₹3,355.69 | ₹2,581.30 |
| November 2024 | ₹3,523.47 | ₹2,710.36 |
| December 2024 | ₹3,593.94 | ₹2,764.57 |
The table shows that CEAT’s share price target for 2024 is expected to continue its upward trend from the previous year, with the maximum price projected to reach ₹3,593.94 in December and the minimum price expected to be around ₹1,862.41 in May. This indicates that the stock could continue to experience significant volatility throughout the year.
Based on the data in the table, the average target price for CEAT’s stock in 2024 is estimated to be around ₹2,896.98, which represents an upside potential of around 56% from the current share price. This suggests that there is a positive outlook for CEAT’s stock in 2024, with analysts predicting that the company could continue to perform well in the tire manufacturing industry.
It is important to note that these are just projections, and actual stock price performance could differ from the targets listed in the table. Based on the data, there appears to be a positive sentiment among analysts towards CEAT’s stock, with a majority of them recommending a “Buy” or “Strong Buy” rating.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹3,665.82 | ₹2,819.86 |
| February 2025 | ₹3,858.76 | ₹2,968.27 |
| March 2025 | ₹4,051.69 | ₹3,116.69 |
| April 2025 | ₹3,617.58 | ₹2,782.76 |
| May 2025 | ₹3,288.71 | ₹2,529.78 |
| June 2025 | ₹3,617.58 | ₹2,782.76 |
| July 2025 | ₹3,445.32 | ₹2,650.24 |
| August 2025 | ₹3,588.87 | ₹2,760.67 |
| September 2025 | ₹3,768.32 | ₹2,898.71 |
| October 2025 | ₹3,994.42 | ₹3,072.63 |
| November 2025 | ₹4,274.02 | ₹3,287.71 |
| December 2025 | ₹4,359.51 | ₹3,353.47 |
The share price target for CEAT in 2025 seems bullish, with the maximum price predicted to be ₹4,359.51 and the minimum price being ₹2,529.78. Investors can expect an average target return of approximately 40% based on the data provided in the table.
However, it is worth noting that the stock price may also experience some bearish trends, as seen in April 2025 when the minimum price is predicted to be ₹2,782.76. Overall, with the projected growth in the upcoming years, CEAT may be a promising investment opportunity for those looking for long-term returns.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹3,051.65 | ₹2,136.16 |
| 2027 | ₹2,593.91 | ₹1,815.73 |
| 2028 | ₹4,669.03 | ₹3,268.32 |
| 2029 | ₹9,590.91 | ₹6,713.64 |
| 2030 | ₹10,680.79 | ₹7,476.55 |
Based on the data provided, the projected share price for CEAT in 2026 is expected to range from a maximum of ₹3,051.65 to a minimum of ₹2,136.16. However, it is important to note that share prices can be unpredictable and subject to various market factors.
In 2027, the projected maximum share price is ₹2,593.91, while the minimum is ₹1,815.73. The year 2028 is projected to be a bullish year for CEAT, with a maximum share price of ₹4,669.03 and a minimum of ₹3,268.32. In 2029, the share price is expected to rise even further, with a projected maximum of ₹9,590.91 and a minimum of ₹6,713.64. Finally, in 2030, the projected maximum share price is ₹10,680.79, with a minimum of ₹7,476.55.
Financial Condition of CEAT: Last 5 years
| Narration | Mar-18 | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
| Sales | 6,282.48 | 6,984.51 | 6,778.83 | 7,609.60 | 9,363.41 |
| Expenses | 5,652.14 | 6,332.33 | 6,052.00 | 6,616.88 | 8,639.72 |
| Operating Profit | 630.34 | 652.18 | 726.83 | 992.72 | 723.69 |
| Other Income | 9.22 | 9.60 | 7.89 | 9.56 | 16.52 |
| Depreciation | 168.61 | 192.71 | 276.51 | 339.63 | 435.20 |
| Interest | 103.63 | 92.87 | 153.92 | 178.76 | 210.13 |
| Profit before tax | 367.32 | 376.20 | 304.29 | 483.89 | 94.88 |
| Tax | 134.03 | 125.12 | 74.23 | 51.59 | 24.30 |
| Net profit | 237.98 | 252.22 | 231.25 | 432.04 | 71.20 |
| EPS | 58.76 | 62.28 | 57.10 | 106.68 | 17.58 |
| Price to earning | 25.63 | 17.98 | 13.89 | 14.59 | 53.02 |
| Price | 1,506.30 | 1,119.90 | 792.95 | 1,556.55 | 932.15 |
| RATIOS: | |||||
| Dividend Payout | 19.55% | 19.25% | 20.99% | 16.85% | 17.05% |
| OPM | 10.03% | 9.34% | 10.72% | 13.05% | 7.73% |
CEAT’s financial statements over the past five years reflect a mixed picture of growth and performance. The company’s revenue has steadily increased over the years, with the highest growth seen in the last year, recording a growth of over 20%. However, the company’s profit growth has not been consistent, with a dip in the year 2022.
The price-to-earnings ratio (P/E) has been volatile, being at 46.65 in May 2023. Despite these fluctuations, the company’s dividend payout ratio has remained relatively stable, with minor variations seen in the last five years. The Price-to-book ratio is not different in terms of volatility, being at 2.52 in May 2023.
Overall, CEAT has shown growth in revenue and a mixed trend in profits, and it will be interesting to see how the company performs in the coming years.
The entire segment is probably going to outperform from here, according to Jay Thakkar, Vice President & Head of Alternate Research at Sharekhan. car ancillaries are anticipated to perform well given how well the car industry is presently performing. Future values of the Nifty Auto Index are anticipated to hit 15,000. At present prices, Ceat is trading between Rs 2,120 and Rs 2,130, and my upside goal is between Rs 2,250 and Rs 2,350, he added.
JM Financial has issued a “buy” recommendation for Ceat stock with a target price of Rs 1800.
Motilal Oswal has a positive outlook on CEAT and has given it a “buy” rating, with a target price of Rs 1860.
Prabhudas Lilladher suggested building a position in CEAT with a target price of Rs 1825.
FAQS
It is anticipated that CEAT per share price will increase to ₹2,567 by the end of 2023.
The share price target of CEAT for 2025 might be around ₹4,359.51.
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.
The per share price of CEAT might reach around ₹10,680.79 by the end of 2030.
What is the amount of dividend announced by CEAT Tyres?
Ceat has announced a dividend of 30.00% for the fiscal year ending in March 2022, which is equal to Rs 3 per share.
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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?
