CEAT eyes up to 5% market share gain in the passenger vehicles segment, increase exports contribution

CEAT, one of India's leading tyre manufacturers, will focus on market share gains in passenger vehicles, and maintain its leadership in the two-wheeler segment, the company disclosed at its investor day meet.

For financial year 2023, Ceat had a market share of 15 percent in the passenger vehicle segment, which it plans on increasing it to 18-20 percent over the next three to four years. Within the two-wheeler segment, Ceat aims to maintain its leadership position and its 28 percent market share that it had in financial year 2023.

Exports will also play a crucial role for the RPG Group-owned tyre company. Ceat is targeting to boost its export contribution to 25 percent of revenue from 18 percent in financial year 2023.

CEAT exports to more than 100 countries worldwide, and it is the preferred choice of many leading automobile manufacturers. In April, the company's MD and CEO Arnab Banerjee told CNBC-TV18 that tyre market is eyeing a significant expansion of its global footprint in Europe and Latin America.

The company said that capex spending will be fragmented so that it can sustain 15 percent + ROCE (return on capital employed).

Brokerage firm Nomura has maintained a neutral rating on Ceat with a price target of Rs 1,765. Nomura remains neutral as Ceat's current valuation of 5.7 times financial year 2025 EV/EBITDA and 15.6 times price-to-earnings, factors in the recovery.

Shares of Ceat are trading 0.5 percent higher at Rs 2,082.95. The stock has gained nearly 30 percent so far on a year-to-date basis and it is the best performer among the tyre stocks this year.