Ceat has soared over 10% to Rs 232 on the bourses on back of heavy volumes. The stock opened at Rs 210 on BSE and has seen a combined 1.9 million shares changing hands on the counter till 1450 hours against an average sub one million shares that were traded daily in past two weeks on BSE and NSE.
The stock is currently trading near to its lifetime high of Rs 244 touched during day trade on BSE on December 10, 2007.
Shares of auto tyres and rubber products maker has outperformed the market by gaining 26% in past one week compared to nearly 2.5% decline in benchmark index.
The company has reported a strong twenty-fold jump in consolidated net profit at Rs 77 crore for the quarter ended September 2013 (Q2) on back of strong volume growth and lower raw material cost. The company had profit of Rs 3.8 crore in a year ago quarter.
Ceat its consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year. Going forward, the company expects both growth and margin to be on similar levels.
The strategic decision of the company to source higher quantity of natural rubber from the international markets to take advantage of the lower prices aided margin expansion.
Analyst at Angel Broking d believe that the company will continue to benefit from the strong traction in the two-wheeler and passenger vehicle tyres and expected stability in commodity prices.
The stock is currently trading near to its lifetime high of Rs 244 touched during day trade on BSE on December 10, 2007.
Shares of auto tyres and rubber products maker has outperformed the market by gaining 26% in past one week compared to nearly 2.5% decline in benchmark index.
The company has reported a strong twenty-fold jump in consolidated net profit at Rs 77 crore for the quarter ended September 2013 (Q2) on back of strong volume growth and lower raw material cost. The company had profit of Rs 3.8 crore in a year ago quarter.
Ceat its consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year. Going forward, the company expects both growth and margin to be on similar levels.
The strategic decision of the company to source higher quantity of natural rubber from the international markets to take advantage of the lower prices aided margin expansion.
Analyst at Angel Broking d believe that the company will continue to benefit from the strong traction in the two-wheeler and passenger vehicle tyres and expected stability in commodity prices.