CEAT:-
"CEAT reported good results for Q1FY13 which was driven by sharp improvement in operating margins on YoY basis boosted by declining natural rubber prices and increasing capacity utilization at the Halol plant. However, on QoQ basis the margins were a bit lower which was in line with expectations. We retain our positive view on CEAT and maintain Buy rating on the stock."
"CEAT reported good results for Q1FY13 which was driven by sharp
improvement in operating margins on YoY basis boosted by declining
natural rubber prices and increasing capacity utilization at the Halol
plant. However, on QoQ basis the margins were a bit lower which was in
line with expectations. We retain our positive view on CEAT and maintain
Buy rating on the stock."
"Sri Lankan business reported net sales of Rs 92.9 cr up 17% YoY and
down 4% QoQ. EBITDA margin stood at 14.9% vs 14.5% in Q4FY12 primarily
due to benefit of rupee depreciation. Consolidated net sales increased
10% YoY to Rs 1,225 cr; Consolidated EBITDA margin stood at 9.3% with a
PAT of Rs 29 cr in Q1FY13."
"We expect CEAT to report continuous improvement in its operating
performance, led by improving utilization at the Halol plant and
declining raw-material prices. Changing product mix, expanding presence
and attractive valuations seem propelling for CEAT at current levels."
"At CMP, the stock is trading at P/E of 3.21x FY13E and 2.54x FY14E
earnings with an EV/EBITDA of 3.16x and 3.09x which we believe are lower
as compared to peers. We maintain BUY on the stock with a target price
of Rs 125 (4x FY13E EPS of 31.2)," says Nirmal Bang research report.
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