Motilal Oswal Securities has reaffirmed its positive stance on CEAT , maintaining a Buy rating while revising the target price upward. The brokerage has set a new target price of ₹4,579.00, representing an increase from the previous target of ₹4,515.00.

Target Price Revision

The updated recommendation reflects Motilal Oswal's continued confidence in the tyre manufacturer's prospects. The target price revision shows an upward adjustment, indicating the brokerage's positive assessment of the company's fundamentals and market position.

Brokerage Recommendation

The maintained Buy rating suggests that Motilal Oswal continues to view CEAT as an attractive investment opportunity in the automotive tyre segment. The upward revision in target price indicates the brokerage's positive outlook on the company's performance trajectory and market fundamentals.

CEAT has projected a positive outlook for the tire industry, forecasting strong single-digit growth by FY31. The company's assessment highlights multiple growth drivers that are expected to support sustained expansion across various tire segments.

Key Growth Drivers

The tire industry's growth trajectory is supported by three primary factors that are reshaping market dynamics:

These factors are expected to create a conducive environment for sustained growth across the tire manufacturing sector.

Commercial Vehicle Segment Outlook

The medium and heavy commercial vehicle (MHCV) segment shows promising near-term prospects. CEAT anticipates replacement demand for MHCVs to grow at mid-to-high single-digit rates. The company also notes potential for additional boost during the summer season, which typically sees increased commercial vehicle activity and higher tire replacement requirements.

Two-Wheeler Segment Projections

The two-wheeler tire segment is positioned for robust growth, with demand potentially reaching high single-digit growth rates. This segment's recovery reflects improving consumer sentiment and increased mobility requirements across urban and rural markets.

Industry Transformation Trends

The tire industry is experiencing significant transformation driven by electric vehicle adoption and premiumization trends. These developments are creating new opportunities for tire manufacturers to develop specialized products and capture higher value segments. The shift toward premium tires reflects changing consumer preferences and improved product quality standards across the industry.