Buy Ceat, target price Rs 1750: Yes Securities

Yes Securities has buy call on Ceat with a target price of Rs 1750. The current market price of is Rs 1637.
Ceat Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 6702.58 Crore) operating in Tyres sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2225.30 Crore, up 12.26 % from last quarter Total Income of Rs 1982.24 Crore and up 26.06 % from last year same quarter Total Income of Rs 1765.34 Crore. Company reported net profit after tax of Rs 120.64 Crore in latest quarter.

Investment Rationale
Post 15% decline from the recent high, the stock rebounded from the support zone. Positive follow-up action could lift the stock till the Rs 1,750 zone.

Promoter/FII Holdings
Promoters held 46.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 23.7 per cent, DIIs 16.2 per cent and public and other 13.3 per cent.