CEAT catches speed on lining up capex of around Rs 750 crore for ongoing fiscal
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Ceat is currently trading at Rs. 2467.00, up by 33.05 points or 1.36% from its previous closing of Rs. 2433.95 on the BSE.
The scrip opened at Rs. 2458.95 and has touched a high and low of Rs. 2475.00 and Rs. 2432.80 respectively. So far 3319 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2640.00 on 10-Jul-2023 and a 52 week low of Rs. 1230.00 on 29-Jul-2022.
Last one week high and low of the scrip stood at Rs. 2592.50 and Rs. 2405.00 respectively. The current market cap of the company is Rs. 9995.22 crore.
The promoters holding in the company stood at 47.21%, while Institutions and Non-Institutions held 38.40% and 14.39% respectively.
CEAT has lined up a capex of around Rs 750 crore for the ongoing fiscal (FY24), mostly to be deployed in increasing production capacity of agri-radial tyres at its Ambernath plant in Maharashtra.
The company expects volume of its supplies to original equipment manufacturers (OEMs) to pick up in the third and fourth quarter of this fiscal, as it completes transition from smaller rim size to bigger sizes, with approvals from automobile manufacturers expected soon.
In the replacement market, where CEAT has seen good growth in the first quarter especially in motorcycle tyres, the company expects the momentum to continue although in the rural market which has been dormant for sometime it may take another two more quarters for growth visibility to come.
Ceat is among the best tyre manufacturers in India. It manufactures a wide range of tyres for two-wheelers, three-wheelers, four-wheelers, tractors and tippers and trucks. Besides tyres, the company also manufactures and markets tubes and flaps.
