Views on Ceat 2QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Ceat 2QFY2016 Results:

Ceat Ltd 2QFY2016 results were in line with our estimates. Revenues, on the expected lines dipped marginally 2% YoY to INR 1,409 cr. Pricing cuts to pass on the soft raw material prices along with subdued domestic demand and increased Chinese imports continue to put pressure on the topline. Operating margins improved sharply 220 bp YoY to 14.4% primarily on account of soft raw material prices and were in line with our estimates of 14.1%. Given the improvement in the operating metrics, the Net profit grew strongly 30% YoY to INR 107.4 cr meeting our estimates of INR 102 cr. We currently have NEUTRAL view on the stock but would review estimates post the management interaction.

Shares of CEAT LTD. was last trading in BSE at Rs.1144.95 as compared to the previous close of Rs. 1177.75. The total number of shares traded during the day was 157130 in over 7342 trades.

The stock hit an intraday high of Rs. 1198.8 and intraday low of 1136.55. The net turnover during the day was Rs. 183657930.

Source : Equity Bulls

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