Ceat - Cautiously Optimistic On Demand, Margin Recovery: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Direct Report.Domestically, Ceat Ltd. is witnessing healthy demand traction on the original equipment manufacturers front with replacement demand being steady in nature. Robust demand is particularly being witnessed in the passenger vehicle space with chip supply issue easing while steady month-on-month improvement is seen in the commercial vehicle space.On the exports front, demand in Europe and Indonesia is muted amid negative economic scenario. Sri Lanka, on the other hand, is witnessing 50-60% decline in volumes with Ceat earning steady margins (unchanged).On the margins front, the company expects Q2 FY23 to be similar to Q1 FY23 with recovery seen from Q3 FY22 onwards. Overall, Ceat aims to achieve ~10-12% operating margins over the medium term. Replacement market business remains more lucrative in terms of margin than the OEM..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ceat - Cautiously Optimistic On Demand, Margin Recovery: ICICI Direct

Ceat - Cautiously Optimistic On Demand, Margin Recovery: ICICI Direct

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