Ceat has rallied 9% to Rs 257 in early noon deals, extending it’s month long rally on BSE, after reporting a strong set of numbers for the quarter ended September 30, 2013.
Shares of auto tyres and rubber products maker has rallied 81% in past one month from Rs 142 on October 18, compared to 1.3% rise in the BSE500 index. The stock hit an all-time high of Rs 290 on April 1992.
The company has reported a strong twenty-fold jump in consolidated net profit at Rs 77 crore for the quarter ended September 2013 on back of strong volume growth and lower raw material cost. Consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year.
On account of prudent strategy by management to increase the imported content of natural rubber when domestic prices were inching higher played?off during the quarter, analyst at Prabhudas Lilladher said in a report.
Capacity expansion at Halol facility, coupled with stable rubber prices over the next couple of quarters, augurs well for the company’s prospects, said analyst.
Analyst at Angel Broking, retain positive view on Ceat and believes 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.
Shares of auto tyres and rubber products maker has rallied 81% in past one month from Rs 142 on October 18, compared to 1.3% rise in the BSE500 index. The stock hit an all-time high of Rs 290 on April 1992.
The company has reported a strong twenty-fold jump in consolidated net profit at Rs 77 crore for the quarter ended September 2013 on back of strong volume growth and lower raw material cost. Consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year.
On account of prudent strategy by management to increase the imported content of natural rubber when domestic prices were inching higher played?off during the quarter, analyst at Prabhudas Lilladher said in a report.
Capacity expansion at Halol facility, coupled with stable rubber prices over the next couple of quarters, augurs well for the company’s prospects, said analyst.
Analyst at Angel Broking, retain positive view on Ceat and believes 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.
