CEAT Ltd Tyre Game Is Hot, But Is It Overinflated at ₹3,800?
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🧠 At a Glance
CEAT Ltd, RPG Group’s tyre titan, has doubled profits in 3 years and expanded margins to 11%. But with ROE still at ~12%, negative other income, and a P/E of 31, the stock’s 44% YoY rally raises eyebrows. Is this a traction king or just pumped-up rubber?
1. 🎯 Introduction with Hook
CEAT has gone from flat to fast.
Once considered the “budget tyre brand,” CEAT is now outperforming even premium rivals in profit growth. Its stock has zoomed 50% in 3 years, with ROCE back at 15%, margins at multi-year highs, and market cap crossing ₹15,000 Cr.
But there’s also a bit of skidding:
FII holding is down
Other income is shockingly negative
Tyresnmore acquisition still feels more buzzwordy than profitable
So are investors getting a smooth ride or just rolling on hype?
2. 🏭 WTF Do They Even Do?
CEAT manufactures all kinds of tyres for:
2-Wheelers
Passenger Vehicles
Trucks, Buses, Off-Road Equipment
Exports to 100+ countries
It operates 6 manufacturing plants, 3 R&D facilities, and is increasingly betting on:
