CEAT shares: Nuvama maintains 'Buy' on tyre business expansion, Camso acquisition
While CEAT continues to evaluate opportunities in the US market, penetration there may be slower due to tariff uncertainties, Nuvama noted.
- Jun 4, 2025,
- Updated Jun 4, 2025 11:18 AM IST
Nuvama Institutional Equities said tyre maker CEAT is gearing up for an ambitious growth phase, with international markets and a recent acquisition set to drive revenues and margins. The domestic brokerage has reiterated its 'Buy' rating on the stock with a target price of Rs 3,800.
It projects a 14 per cent revenue CAGR and 26 per cent EBITDA CAGR over FY25–27, buoyed by CEAT's expansion in both its core tyre business and new high-margin segments unlocked by the Camso acquisition. Camso, a specialist in off-highway tyres (OHT), contributes €200 million in revenue and is expected to be consolidated into CEAT's books from Q2 FY26.
CEAT's outlook for FY26 indicates that export markets — particularly Europe, the Middle East, Asia and Latin America — will be key growth drivers, even as domestic replacement demand is expected to grow only in single digits. While CEAT continues to evaluate opportunities in the US market, penetration there may be slower due to tariff uncertainties, Nuvama noted.
CEAT is also making strides in the electric vehicle (EV) segment, securing a 30 per cent share in electric four-wheelers (E-4W) and 12 per cent in electric two-wheelers (E-2W). The company is now focused on deepening its presence in the PCR (Passenger Car Radial) and TBR (Truck, Bus and Radial) segments.
The integration of Camso and continued international expansion mark a strategic pivot for CEAT toward premium, high-margin products and diversified revenue streams. Nuvama's valuation at 16x FY27E P/E reflects confidence in the company's margin trajectory, operational efficiency and market share strategy.
"Despite near-term challenges in domestic replacement demand, CEAT’s broader international push and its entry into OHT via Camso position it for multi-year growth," Nuvama stated.
As CEAT sharpens its focus on export markets and higher-value segments, investors will be watching closely to see how these strategies translate into earnings momentum and sustained leadership across tyre categories.
Meanwhile, shares of CEAT were trading 0.48 per cent lower at Rs 3,634.85 on Wednesday.
Nuvama Institutional Equities said tyre maker CEAT is gearing up for an ambitious growth phase, with international markets and a recent acquisition set to drive revenues and margins. The domestic brokerage has reiterated its 'Buy' rating on the stock with a target price of Rs 3,800.
It projects a 14 per cent revenue CAGR and 26 per cent EBITDA CAGR over FY25–27, buoyed by CEAT's expansion in both its core tyre business and new high-margin segments unlocked by the Camso acquisition. Camso, a specialist in off-highway tyres (OHT), contributes €200 million in revenue and is expected to be consolidated into CEAT's books from Q2 FY26.
CEAT's outlook for FY26 indicates that export markets — particularly Europe, the Middle East, Asia and Latin America — will be key growth drivers, even as domestic replacement demand is expected to grow only in single digits. While CEAT continues to evaluate opportunities in the US market, penetration there may be slower due to tariff uncertainties, Nuvama noted.
CEAT is also making strides in the electric vehicle (EV) segment, securing a 30 per cent share in electric four-wheelers (E-4W) and 12 per cent in electric two-wheelers (E-2W). The company is now focused on deepening its presence in the PCR (Passenger Car Radial) and TBR (Truck, Bus and Radial) segments.
The integration of Camso and continued international expansion mark a strategic pivot for CEAT toward premium, high-margin products and diversified revenue streams. Nuvama's valuation at 16x FY27E P/E reflects confidence in the company's margin trajectory, operational efficiency and market share strategy.
"Despite near-term challenges in domestic replacement demand, CEAT’s broader international push and its entry into OHT via Camso position it for multi-year growth," Nuvama stated.
As CEAT sharpens its focus on export markets and higher-value segments, investors will be watching closely to see how these strategies translate into earnings momentum and sustained leadership across tyre categories.
Meanwhile, shares of CEAT were trading 0.48 per cent lower at Rs 3,634.85 on Wednesday.