Buy Ceat, target price Rs 1700: Yes Securities

Buy Ceat, target price Rs 1700:  Yes Securities

Yes Securities has buy call on with a target price of Rs 1700. The current market price of Ceat is Rs 1595.8.

Ceat Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 6455.03 Crore) operating in Tyres sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2225.30 Crore, up 12.26 % from last quarter Total Income of Rs 1982.24 Crore and up 26.06 % from last year same quarter Total Income of Rs 1765.34 Crore. Company reported net profit after tax of Rs 120.64 Crore in latest quarter.

Investment Rationale
The stock has resumed its uptrend after breaking out of a bullish flag pattern on higher volumes. Further, it has closed beyond the upper end of the Bollinger bands, confirming the bullishness. Technical indicator RSI is also confirming that the stock it trading in a bullish territory.

Promoter/FII Holdings
Promoters held 46.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 23.7 per cent, DIIs 16.2 per cent and public and other 13.3 per cent.

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