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Ceat’s tech focus could offer it an edge

LivemintLivemint · 9m
Ceat’s tech focus could offer it an edge

Ceat Ltd, a tyre manufacturer, has the potential to increase its production capacity of truck and bus radial (TBR) tyres and passenger car radial tyres at its Chennai plant. The company's focus on digital and technological advancements has been well received by analysts, with automation and digitisation levels at the plant being praised. Ceat expects growth in the double digits in the TBR replacement segment and aims to increase its export contribution to over 25% of sales in the next few years. However, potential margin pressure from increasing input costs like rubber is a concern. Ceat plans to expand its capacity through brownfield expansion rather than greenfield investment to improve return ratios. The stock has experienced significant gains over the past year, but further upside may be limited.

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