Views on Ceat Ltd 1QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Ceat Ltd 1QFY2016 Results:

"Ceat Ltd 1QFY2016 results were way ahead of our as well as consensus estimates. Revenues were flat at INR 1,466 cr. Subdued OEM and export sales led to sluggish topline during the quarter. (Revenues were in line with our estimates of INR 1,490 cr). However, Ceat has surprised positively on the operating front reporting a record margin of 15.3%. The margins improved sharply 600 bp yoy and were significantly ahead of our estimates of 11.1%. Softness in raw material prices (both rubber and crude based) coupled with decrease in other expenditure (possibly lower advertising and brand promotion expenses) boosted profitability. EBIDTA at INR 224 cr beat our estimates of INR 166 cr. Given the strong operating performance, Net Profit at INR 121 cr more than doubled yoy and was way beyond our estimates of INR 78 cr. Currently, we have NEUTRAL view on the stock but would review our estimates post interaction with the management."

Shares of CEAT LTD. was last trading in BSE at Rs.778.85 as compared to the previous close of Rs. 753.6. The total number of shares traded during the day was 101048 in over 4132 trades.

The stock hit an intraday high of Rs. 782.1 and intraday low of 757. The net turnover during the day was Rs. 78204072.

Source : Equity Bulls

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