Mukul Mahavir Agrawal Portfolio Stock Declares Highest-Ever Dividend of Rs 30/Share: Buy To Be Eligible?

As of Friday's closing session, CEAT Ltd., a mid-cap company in the consumer discretionary sector, has a market value of Rs 10,292.93 Cr. Established in 1924, CEAT stands as the flagship firm of the RPG GROUP and is one of the largest tyre companies in India. With nine geographical regions and seven regional offices spread across Brazil, Dubai, Germany, India, Indonesia, Nepal, and the Philippines, the company's operations transcend continents. Following the release of the company's financial results for the quarter and year that ended on March 31, 2024, CEAT's shares ended Friday on the BSE 2.90% down at Rs 2544.60 apiece.

CEAT Dividend

The Board of Directors "Recommended final dividend Rs. 30/- (Rupees Thirty only), i.e. 300% (Three Hundred percent) per equity share of face value of Rs. 10 (Rupees Ten only) each fully paid up, for the financial year ended March 31, 2024, subject to the approval of the members at ensuing Annual General Meeting, which will be paid / dispatched within 30 days of its declaration thereat," said CEAT in a stock exchange filing.

CEAT Q4 Results

For the fourth quarter that ended in March 2024, the company's consolidated net profit dropped by 23% to Rs 102 crore from Rs 132 crore in the January-March quarter of 2022-2023, according to the financial statement. Its revenue from operations jumped from Rs 2,875 crore in the fourth quarter of FY23 to Rs 2,992 crore during the period under review. The company reported a net profit of Rs 635 crore for the fiscal year that ended in March 2024, up from Rs 182 crore in the previous year. Revenue from operations went up from Rs 11,315 crore in FY23 to Rs 11,943 crore in FY24.

Mr. Arnab Banerjee, MD & CEO, CEAT Limited said, "The company ended the year on a positive note, we saw recovery in volumes in the second half of the quarter in replacement and international markets with stable margins for the quarter and significant improvement in the margins on full year basis and expect the positive momentum in Q1FY25. We have achieved commendable growth, largely attributable to share gain in passenger categories both in 2W and 4W and substantial expansion within the export segment. Overall, our profits & margins grew significantly during the year. The operating margins for the quarter includes additional provision made towards Extended Producers Responsibility (EPR) related requirement imposed on Tyre Industry by the Government of India."

Mr. Kumar Subbiah, CFO of CEAT Limited, said, "As part of our continuous effort to bring efficiencies in cashflow, it has helped us reduce our consolidated gross debt by approximately Rs. 100 crores in the quarter, supported by improved operational performance. The actual overall capex for the year was close to approx Rs. 860 crore in line with our plan that we managed to fund through internal accruals. It has been a gratifying year overall, marked by positive free cash flow, significant reduction in debt, improvement in operating margins and the maintenance of healthy balance sheet leverage ratios."

CEAT Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "CEATLTD is currently trading at 2520 levels, having retraced from the resistance at 2620, near its 50-day Exponential Moving Average (EMA). Despite this correction, the stock exhibited resilience by rebounding from today's low, indicating robust support at 2360. To gauge sustained strength, it's imperative for CEATLTD to maintain levels above the resistance at 2620. Consequently, fresh investments are advisable only upon the stock's ability to sustain above this critical level."

"For existing investors who entered at lower levels, it's prudent to employ a strict stop-loss strategy at 2360 to mitigate potential downside risks. However, if the stock breaches the mentioned support levels, further correction may be anticipated, necessitating caution. In such a scenario, investors should remain vigilant and monitor price action closely to assess the stock's trajectory accurately. Given these dynamics, investors should exercise diligence and adopt a proactive approach, adjusting their strategies in response to evolving market conditions to optimize returns and manage risks effectively," the analyst further added.

Mukul Mahavir Agrawal Stake In CEAT

As per the shareholding of the company available on BSE, ace investor Mukul Mahavir Agrawal held 5 lakh shares of the tyre company in his portfolio in Q4FY24 which is 1.24% of the total paid-up share capital of CEAT.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.