A director at Ceat Ltd bought 39,400 shares at 1,191.310INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly s...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CEAT: Op performance in-line; encouraging recovery since June (CEAT IN, Mkt Cap USD0.7b, CMP INR1367, TP INR1775, 30% Upside, Buy) Price increases to pass on cost inflation happening gradually CEAT's 1QFY22 operating performance was in-line, but higher depreciation and interest impacted PAT. Demand recovery has been encouraging since Jun'21 and is back at 2HFY21 levels. While cost inflation is moderating, the industry is taking gradual price increases to dilute the impact. We cut our FY...
(CEAT IN, Mkt Cap USD0.6b, CMP INR1014, TP INR1250, 23% Upside, Buy) Strong EBITDA growth offset by new TBR plant costs** CEAT's 3QFY20 operating performance was expectedly good, driven by benefit of rubber prices. However, overheads and interest/depreciation of the new TBR plant resulted in flat profit growth. While full cost of the new plants will reflect in 1HFY21, benefit of the new capacities will be seen in the P&L only in 2HFY21. ** We maintain our estimate, which implies ~12%/21%/31% r...
Q2FY20 results Gross margins surprise; adjusted PAT disappoints: CEATs Q2FY20 Adj PAT of Rs436mn (-28% yoy) was 9% below estimates. While gross margins surprised positively, this was offset by negative operating leverage, a sharp increase in depreciation and a higher tax rate. EBITDA margins ahead; depreciation rises sharply: Revenues at Rs 16.9b (-4% yoy) were a tad below expectations. Revenue growth was impacted by a sharp slowdown in the CV segment. EBITDA margins at 10.1% (up 100bps yoy,...
Q1FY20 results Adjusted PAT disappoints: CEATs Q1FY20 Adj PAT of Rs518mn (-28% yoy) was 8% below estimates. Adjusted for accounting changes, operating performance was inline. Depreciation/interest expenses increased sharply. EBITDA margins inline: Revenues at Rs 17.3b (+3% yoy) met expectations. EBITDA margins at 9.5% (down 80bps yoy, up 30 bps qoq) were a tad above estimates (9.0%). However, excluding the impact of INDAS 116, the EBITDA margins cane in at 9.0%. RM expenses showed a marginal...
CEAT: Above est. led by lower RM; Stable costs and price hike to aid margins (CEAT IN, Mkt Cap USD0.5b, CMP INR804, TP INR989, 23% Upside, Buy) Higher realizations, lower RM costs boost margins: 1QFY20 consol. revenues grew 3% YoY (flat QoQ) to INR17.5b (v/s est. INR 17.7b). While volumes remained flat, realization grew 2-3%. EBITDA margins expanded 30bp QoQ (-80bp YoY) to 9.5% (v/s est. of 8.5%), driven by lower RM costs and IND-AS116 related lower other expenses (~60bp). Higher deprecia...
CEAT: Above est. led by cost control; demand remains weak (CEAT IN, Mkt Cap USD0.6b, CMP INR1057, TP INR1277, 21% Upside, Buy) Realizations drive revenue growth: 4QFY19 consol. revenue grew 4% YoY (+2% QoQ) to INR17.6b (in-line). While volumes declined 3%, realization grew ~6%. EBITDA margin came in at 9.2% (v/s est. of 8.5%, +100bp QoQ), driven by cut in discretionary costs, which diluted impact of price cuts (-50bp QoQ). Higher other income restricted adj. PAT decline to 28% YoY (+27% Q...
Q3FY19 results PAT below estimates: CEATs Q3FY19 Adj PAT of Rs528mn (-37% yoy; -23% qoq) was 25% below estimates. The miss was largely on account of a weak operating performance on higher than expected other expenses. Revenues in-line; EBITDA margins below est: Revenues at Rs 17.1b (+9%yoy) broadly met expectation. On the positive side, gross margins at 40.9% showed an improvement of 160bps qoq possibly on account of lower prices of crude based derivatives as well as price hikes taken in Oc...
CEAT: Weak demand, adverse mix, inventory build-up hurt margins (CEAT IN, Mkt Cap USD0.6b, CMP INR1118, TP INR1370, 23% Upside, Buy) Price hikes drive revenue growth: revenue grew ~9% YoY (-2% QoQ) to INR17.1b (in-line) in 3QFY19, driven by 2% YoY (-5.4% QoQ) volume growth. The impact of RM cost inflation of 2.1% QoQ was offset by price hike of 2-3%. EBITDA declined 24% YoY (-10% QoQ) to INR1.4b (our estimate: INR1.6b) due to higher other expenses (+16% YoY/7% QoQ), impacted by adverse mi...
Q2FY19 results PAT below estimates: CEATs Q2FY19 Adj PAT came at Rs644mn (-21% yoy; -12% qoq) was 20% below estimates. The miss was largely on account of weaker than expected operating performance on higher than expected other expenses/employee costs along with lower other income( Rs32.7mn v/s est of Rs 70 mn). Exceptional item of Rs20 mn was on account of compensation for workmen separation. Revenues in-line; EBITDA margins below est: Revenues at Rs 17.2b (+15%yoy) were in-line with expecta...
CEAT: RM inflation diluted by price hikes; Volume outlook strong (CEAT IN, Mkt Cap USD0.6b, CMP INR1106, TP INR1343, 21% Upside, Buy) Raw material inflation, one-off labor cost dents margin QoQ: 2QFY19 consol. revenue grew ~15% YoY (+3% QoQ) to INR17.5b (in-line), driven by 12.4% YoY (1.4% QoQ) volume growth. RM cost inflation of 3.5% QoQ was diluted by price hike of 1.7% and favorable revenue mix. Further, higher staff cost and marketing spend impacted EBITDA margin, resulting in 120bp Q...
Q1FY19 results Adj PAT in-line; operating performance above estimates: CEATs Q1FY19 Adj PAT came in at Rs734mn (+56x yoy; -21% qoq). This was 4% above our estimates on lower than expected other expenses. However tax rate at 40% in 1QFY19 was higher qoq (36% in 4QFY18) due to increase in cess on income tax and prior deffered tax items. Revenues in-line; EBITDA margins above est: Revenues at Rs 17.0b (+17%yoy) were in-line with expectations. Gross margins at 39.3% were stable as rubber prices...
CEAT: Op. performance in-line; RM cost inflation impact curtailed by price hike (CEAT IN, Mkt Cap USD0.8b, CMP INR1324, TP INR1588, 20% Upside, Buy) Higher ad spends, RM dent margins QoQ: 1QFY19 consol. revenue grew ~17% YoY (+2% QoQ) to INR17.1b (in-line), driven by 18.5% YoY volume growth. Adverse mix resulted in ~1.5% YoY decline in realization. Gross margin shrank 40bp QoQ (+520bp YoY) to 39.3% (est. of 38.8%) due to crude-related RM cost inflation and INR depreciation. Further, highe...
ceat: Fueling growth on the back of capex; Strong focus on PCR, 2W and OHT bodes well for margins (ceat IN, Mkt Cap USD0.8b, CMP INR1345, TP INR1845, 37% Upside, Buy) We met CEAT’s MD Mr Anant Vardhan Goenka and CFO Mr Kumar Subbiah at the RPG Annual Investor Conference 2018. Key takeaways: CEAT plans to invest INR35-40b over the next 3-5 years to expand its capacity. This would lead to its capacity increasing by ~50% post full ramp-up in FY21. Majority of this capex is directed toward...
Q4FY18 results Adj PAT below est led by weak operating performance: CEATs Q4FY18 Adj PAT (post adjusting for VRS expense of Rs2.4bn) at Rs929mn (+16% yoy) was 12% below our estimates. This was primarily due to weak operating performance on higher RM costs. Higher RM costs more than offset operating leverage benefits: Revenues at Rs 16.7b (+14%yoy) were in-line with expectations, driven by 11.5% yoy volume growth while realizations increased 2.5% yoy. However gross margins disappointed as RM...
CEAT: Strong volume growth, but adverse mix/cost inflation restrict margins (CEAT IN, Mkt Cap USD1.1b, CMP INR1596, TP INR1845, 16% Upside, Buy) Operating leverage dilutes impact of RM cost inflation: 4QFY18 consol. revenue grew ~14% YoY (+6% QoQ) to INR16.7b (est. of INR16.5b), driven by 11% YoY volume growth. Gross margin shrunk 210bp QoQ (+250bp YoY) to 39.7% (est. of 38.5%), led by crude-related RM cost inflation (100bp impact) and an adverse mix (100bp impact) due to higher OEM sales...
Q3FY18 results PAT below est; Operating performance broadly in-line: CEATs Q3FY18 PAT at Rs833mn (-2% yoy) was 8% below our estimates. While the EBITDA was inline with expectations, the variance was on account of a higher than expected interest cost and a sharper increase in the tax rate. Higher other expenses offset gross margin improvement: Revenues at Rs 15.7b (3% below expectations) grew by 13% yoy. EBITDA margins at 11.9% (up 40 bps qoq) were in line with expectations – a sharp improvem...
CEAT: Results below estimates; Heavy capex planned for expansion (CEAT IN, Mkt Cap USD1.0b, CMP INR1650, TP INR1899, 15% Upside, Buy) Results below estimates: 3QFY18 revenue rose 12.6% YoY on a like-to-like basis (after netting off excise of INR1,596m from 3QFY17 revenue) to INR15,742m (est. INR16,974m). EBITDA increased 22% YoY to INR1,870m (est. of INR2,054m) from INR1,535m in 3QFY17. EBITDA margin expanded 90bp YoY to 11.9% (est. of 12.1%), driven by 50bp gross margin expansion. Consequen...
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