"CEAT’s results for the third quarter of FY24 were as expected in terms of absolute numbers. However, the EBITDA margin came in at 14.1%, slightly lower than the estimated 14.6%. The margin decreased by 80 basis points quarter-on-quarter due to a slight rise in raw material costs. Although commodity prices have already reached their lowest point, the EBITDA margin is expected to remain within a certain range due to volume growth and an improved product mix.
Maintaining the earnings per share (EPS) forecast for FY24, there is a 4% upward revision for FY25 EPS. This adjustment accounts for the anticipated recovery in demand for two-wheelers and exports, along with reduced depreciation. The recommendation to buy the stock is reiterated, with a target price of INR 3,250."