CEAT shares surged over 9% on Wednesday following the company’s announcement of its Q4 earnings and a double-digit dividend. Despite a slight dip in net profit, investors responded positively to the company’s strong revenue performance and optimistic business outlook.
In the fourth quarter, CEAT reported a consolidated net profit of ₹99 crore, a modest decline of 3.5% from ₹102 crore in the same quarter last year. However, the company’s revenue rose sharply by 14.3% year-on-year, reaching ₹3,420.6 crore compared to ₹2,992 crore in the March 2024 quarter. EBITDA for the quarter stood at ₹393.5 crore, down 1.8% from ₹400.9 crore in the previous year, while EBITDA margins were maintained at a healthy 11.5%.
The upbeat sentiment drove CEAT’s stock up by 9.32% to ₹3,346.75 on the BSE, pushing the company’s market capitalization to ₹13,484 crore. The trading volume reached 0.48 lakh shares with a turnover of ₹15.53 lakh. CEAT’s stock has shown strong momentum, gaining over 51% from its 52-week low of ₹2,211 recorded on May 13, 2024. It had earlier hit a 52-week high of ₹3,581.45 on December 9, 2024.
Commenting on the company’s performance, Arnab Banerjee, Managing Director and CEO of CEAT, expressed satisfaction with the revenue growth across all key segments. “It was a very satisfying top line performance for the quarter and overall, for the year. We crossed an important milestone of ₹13,000 crore in annual revenue. The Replacement segment showed consistent growth, while the OEM business performed well in Q4,” he said. Banerjee also highlighted CEAT’s focus on margin improvement and its plans to integrate the CAMSO compact construction business in the current fiscal.
In a move that added further cheer for investors, CEAT’s Board of Directors recommended a dividend of ₹30 per equity share (face value ₹10), subject to shareholder approval at the upcoming AGM.
From a technical standpoint, CEAT stock appears to be in a strong position. With a Relative Strength Index (RSI) of 63.1, the stock is trading in a neutral zone — neither overbought nor oversold. Moreover, it is trading above all major moving averages — including the 5-day to 200-day averages — indicating bullish momentum.
CEAT continues to focus on its core business of manufacturing automotive tyres, tubes, and flaps, while exploring new growth opportunities both in domestic and international markets.
