Brokerages have mixed views on CEAT after its analyst meeting. While Nuvama has retained 'buy' and has given a target price of Rs 3,000 apiece, Philip Capital has taken a 'neutral' stance on the stock and has given a target price of Rs 2,580 apiece. 

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Nuvama has a positive view on CEAT underpinned by continuing revenue growth, expanding margins, and reducing leverage. Further, the brokerage expects revenue at a nine per cent compound annual growth rate (CAGR) over FY24–26E, supported by growth across Original equipment manufacturer (OEM), replacement, and export segments. 

Moreover, it sees the net debt/ earnings before interest, tax, depreciation, and amortisation EBITDA shall reduce from 1.3x in FY24 to 1.1x in FY26E, due to an average Free Cash Flow of Rs 4 billion-plus.

However, Philip Capital remains cautious due to near-term cost pressures, "We believe that lowering product development costs on EV tyres may result in a lower competitive edge as EV tyre replacement demand picks up over the medium term." 

Analysts meet highlights:

>> The management expects double-digit growth in most segments except Truck, Bus, and Radial tyres which track Gross Domestic Product (GDP) growth.

>> The company will focus on maintaining a 33 per cent market share in the 2W segment.

>>The management is targeting more than 25 per cent export share by FY26.

>> It will focus on increasing market share by introducing 100-200 SKUs/year in the off-highway segment.

>> It will focus on electrification, premium, and digital driving.

>> It is aiming to expand into Europe and Canada.

>> 95 per cent share of super premium vehicles in the replacement market.

>> Margins may be affected due to an increase in raw material prices.

CEAT share price: Past performance

In a year, shares of CEAT have gained over 26 per cent against Nifty50's rise of over 25 per cent. 

June 11 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.