Market share expansion will be key to CEAT’s future growth
After a sharp 250 basis points jump in the operating margin at 13.4 per cent in FY21, analysts expect a contraction of 100-150 basis points due to input cost pressure.
Synopsis
To protect profitability, the company has raised product prices and has plans to reduce costs through higher process efficiency.
ET Intelligence group: The stock of tyre maker CEAT has been in a tight range over the past three months following raw material inflation amid a challenging demand scenario due to the pandemic. To protect profitability, the company has raised product prices and has plans to reduce costs through higher process efficiency. This together with improving replacement and export volume and a focus on increasing market share in key categories is likely
