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Three analysts see Ceat shares crossing ₹4,000 levels; check their revised price targetsOf the 21 analysts that have coverage on CEAT, 15 have a "buy" rating and three have "hold" and "sell" rating each.By Shloka Badkar   June 4, 2025, 1:19:58 PM IST (Published)3 Min ReadShares of Ceat Ltd. declined on Wednesday, June 4, as brokerages maintained a divergent outlook on the tyre manufacturer on its road ahead.

Brokerage firms Nuvama and Nomura have maintained their "buy" ratings, while CLSA has an "outperform" rating on the stock, with price target of ₹3,800, ₹3,945 and ₹3,933 per share, respectively.

On the flip side, Kotak Securities has a "sell" rating on the stock with a price target of ₹2,925, while ICICI Securities downgraded the stock to "hold" from its earlier "buy" recommendation.

Nuvama

The brokerage said Ceat's exports outlook for the financial year 2026 is positive. It said the company's FY26 domestic replacement growth is likely to be in single digits.

Ceat has gained share in two-wheelers, truck bus radial (TBR) tyres and E-PCR space in FY25. The company is now targeting further gains in passenger car radial (PCR) tyres / Truck Bus Radial (TBR) segments, Nuvama said.

The Camso acquisition increased high-margin off-highway tyre (OHT) and exports share in revenue from 15% and 19% to 25% and 26%, respectively, the brokerage said.

In December 2024, Ceat announced that its board approved the acquisition of Camso brand's off-highway construction bias tyre and tracks business from Michelin. The transaction, valued at approximately $225 million, was set to be completed within 6-9 months, subject to regulatory approvals, the company said in December.

Nuvama is building in revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) CAGR of 14% and 26%, respectively over FY25-27.

Nomura

The brokerage said Ceat's focus is on growing ahead of the industry despite the competition. The Camso initiatives are in place to regain lost ground, it said.

The company is also witnessing steady market share gains across two-wheeler and PCR replacement segments, it said.

Nomura said push across original equipment and exports should sustain 11% revenue CAGR over FY25-27.

It expects Ceat's OHT mix to rise to 25% in the second half of FY26, the highest among its peers.

CLSA

The brokerage said the Camso integration and overall margin revival are near-term objectives for Ceat. It said with the Camso deal done, the company's revenue potential is $1.2 billion after three years.

The company is expecting to gain market share in the TBR replacement market, CLSA said.

It is also witnessing a margin upcycle on the back of softening raw material basket prices, it added.

CLSA sees 200 to 300 basis points of margin expansion for Ceat in FY26. In the March quarter, its margin had contracted to 11.3% from 13.1%.

Of the 21 analysts that have coverage on the stock, 15 have a "buy" rating and three have "hold" and "sell" rating each.

Ceat shares declined 1.29% to hit an intraday low of ₹3,606 apiece on Wednesday, June 4. The stock was trading 0.93% lower at ₹3,619.6 apiece at 12.10 pm. It has gained 13.2% this year, so far.

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