Buy Ceat tyres with a target of Rs.150
Ceat tyres has shown great results. It EPS went up from 2 to 30 which is a positive jump. Increased sales and controlled cost was the major reason for the increased profitability. Some key notes
Analysis of ceat ltd financial year 2012-2013
- Sales increased went up from 4827cr to 5349cr an increased of 10.81%
- Operating expenses have gone up by only 7% from 4206cr to 4500cr
- Operating profit went up by 53% from 272 to 418
- Net profit increased by a big margin from 8.9cr to 120cr a growth of 1190%
- The book value per share have increased from 190 to 217 which is a positive sign.
The stock will gain in medium to long term and I recommend to buy the share of the company with a target of 150
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