CLSA sees margin upcycle for Ceat, maintains ‘Outperform' call with Rs 3,933 target price
CLSA has reiterated its Outperform rating on Ceat with a target price of ₹3,933, citing positive near-term drivers including margin revival and the strategic Camso acquisition.
The brokerage said that Camso integration and an overall margin revival are key focus areas for the company in the near term. Ceat also expects to gain market share in the high-value TBR (Truck & Bus Radial) replacement market.
The Camso deal, now completed, carries a $1.2 billion revenue potential over the next three years, according to CLSA. In addition, Ceat is currently in a margin upcycle, benefiting from the softening of raw material prices, which should contribute 200–300 basis points of margin expansion in FY26.
CLSA believes the combination of a stronger product mix, synergy gains from Camso, and improving margins positions Ceat well for sustained outperformance in the coming quarters.
Disclaimer: The views and target prices mentioned in this article are as stated by CLSA. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
Markets Desk at BusinessUpturn.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
Does This Make Slate's Electric Truck Dead on Arrival?
Key Points Slate Auto captured customer interest with its $20,000 electric truck. The automaker was one of many competitors to raise prices recently. Ford's upcoming $30,000 electric truck should draw some attention. 10 stocks we like better than Ford Motor Company › At a time when the global automotive industry is contemplating how to deal with highly advanced and highly affordable Chinese electric vehicles (EVs) slowly spanning more of the globe, Slate Auto has been slowly growing in Detroit. The young automaker -- just founded in 2022 -- seemingly came out of nowhere to take hold of the market's intrigue, especially with the backing of Amazon's Jeff Bezos, with its mid-$20,000 priced electric truck. But with a couple of new developments, is it dead on arrival? Bad timing It sure seems like a rough time to launch an EV start-up company, with the Trump administration's steadfast desire to roll back EV incentives and even remove penalties for companies not meeting emissions standards. On the flip side, you could argue that it's a great time for Slate Auto to launch, as it tackles the industry's primary hurdle: Affordability. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service As previously mentioned, Slate Auto became the latest company to raise the price of its vehicles before even delivering its first. One of the big selling points of the Slate truck was that you could configure a vehicle for under $20,000, including incentives and tax credits. However, with the EV tax credit going away, and the increased cost from tariffs on imported parts, the cost is now in the mid-$20,000s. "People are looking at Slate because it's a throwback, with roll-up windows and no radio," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, according to Automotive News. The company hopes buyers "will pay a little more for a better wrap, accessory panels, or anything that adds profit." It's an impressive feat to produce a truck at such a price tag, much less an electric truck. Slate Auto deserves its applause, but in losing the EV tax credit and raising its price tag, it's now going to compete with a selection of combustion engine vehicles and hybrids at or around $30,000 with far more technology and equipment packed in. One big-time example If you're wondering what some of the competition could look like, take a quick glance at what Ford Motor Company (NYSE: F) has been up to recently. The company developed a small "skunkworks" team based in California that was dedicated to making a universal low-cost EV platform. Ford is certainly hyping what's to come, calling Monday's announcement and unveiling a "Model T moment." Ford's first vehicle to launch on the new EV platform will be a midsize electric truck, closer to the size of the Maverick than the Ranger, due in 2027. It will be the first of potentially eight EV models to launch on the platform, and -- most importantly -- Ford says the $30,000 four-door electric truck will be profitable. The company also made massive adjustments to its production process and changed its assembly line to be an "assembly tree," where three sub-assembly lines will run simultaneously before combining the parts at the end. It's a process that, along with other optimizations, should enable the plant to assemble the new EV platform 15% faster than current vehicles. It reduces parts by 20% versus a typical vehicle, with 25% and 40% fewer fasteners and workstations in the plant. This is important to generate profits from such a low-priced vehicle. Dead on arrival? Slate Auto and its vehicle are an intriguing development within the EV industry. Its bare-bones approach was refreshing, and there's little doubt it'll find a target consumer, although it's possible that it'll be more niche than mainstream. Slate said it has over 100,000 reservations in the U.S., but as reservations are secured with only a $50 refundable deposit, there's a good chance only a small percentage will be converted into orders. Not only is Ford soon to release a highly competitive electric truck in 2027, both Rivian Automotive and Lucid Group are launching electric crossovers next year at prices between $45,000 and $50,000, tens of thousands of dollars lower than their original models. So, is Slate's truck dead on arrival? Without Slate being able to hold its core marketing selling point of a sub-$20,000 electric truck, the young EV maker might find it really difficult to gain traction in the increasingly competitive and more affordable EV market. It's not dead on arrival, but there are serious reasons for concern. Do the experts think Ford Motor Company is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Ford Motor Company make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,071% vs. just 185% for the S&P — that is beating the market by 886.18%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy. Does This Make Slate's Electric Truck Dead on Arrival? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
6 days ago
- Business Upturn
Honasa Consumer surges over 8% after Q1 earnings beat and brokerage upgrades
By Aditya Bhagchandani Published on August 13, 2025, 09:24 IST Shares of Honasa Consumer Ltd., the parent company of Mamaearth, surged 8.15% to ₹291.25 on Wednesday, August 13, following the announcement of its June quarter (Q1 FY26) results after market hours on Tuesday. This marks the second consecutive session of gains for the stock. The company posted a net profit of ₹41 crore for Q1 FY26, up 2.7% year-on-year, while revenue grew 7% YoY to ₹595 crore. EBITDA slipped 1% YoY to ₹46 crore, with margins holding at 7.7%. Hong Kong-based brokerage CLSA upgraded Honasa to 'Outperform' and raised its price target to ₹333, noting Q1 revenue growth of 7.4% YoY in line with expectations, alongside underlying volume growth of 10.5% YoY. CLSA highlighted a sequential EBITDA margin expansion of 264 bps to 7.7%, delivering a 47% beat versus its estimates and a 44% beat on consensus expectations. Management guided for an EBITDA margin of around 7% in FY26, with 100-150 bps expansion annually over the next 4–5 years. CLSA also raised its FY26–FY28 earnings estimates by 15–26%. Jefferies maintained a 'Buy' rating with a price target of ₹400, citing positive margin surprises. The brokerage acknowledged that unseasonal rains impacted sunscreen sales but noted that sequential EBITDA margin improvement and outperformance versus expectations were key positives. Jefferies added that while new brands are scaling slowly, Mamaearth remains the primary growth driver. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
6 days ago
- Business Upturn
CLSA positive on HAL after Q1 margin gains, expects stock to outperform with target price of Rs 5,436
By Markets Desk Published on August 13, 2025, 07:54 IST CLSA has maintained its outperform rating on Hindustan Aeronautics Limited (HAL) with a target price of ₹5,436 after the company reported a sharp improvement in margins and profitability in the first quarter of FY26. Profit after tax rose on the back of higher gross margins and lower provisions, while EBITDA jumped 31% year-on-year as margins expanded by 414 basis points. The company's cash reserves climbed to US$4.5 billion during the quarter, driving a 36% increase in treasury income. CLSA said HAL's long-term business outlook remains strong, with a decadal order pipeline of around US$54 billion. It highlighted the expected large fighter aircraft order in 2025 and greater visibility on General Electric engine deals as key catalysts that could support growth. However, the brokerage also flagged certain risks, including the potential shift of key aerospace programmes to a public-private partnership model and the challenge of sustaining the current high margin profile. While these risks warrant monitoring, CLSA believes HAL's solid order visibility, strong balance sheet, and near-term catalysts position it well for continued earnings growth, reinforcing its positive stance on the stock. Disclaimer: The views and recommendations made in this article are those of CLSA. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions. Ahmedabad Plane Crash Markets Desk at
