Ceat shares have come into focus after the tyre maker announced the acquisition of Camso’s off-highway tyre (OHT) business from Michelin for $225 million, adding exposure to the construction and rubber track segment. At the current market price of ₹3,353.50, brokerages see significant upside potential across ratings and target prices.
CLSA has maintained an outperform call with a target price of ₹4,399 per share, implying an upside of nearly 31 percent. The brokerage said while near-term weakness is likely during the transition to independent manufacturing, the acquisition adds a new growth vertical. CLSA expects debt to rise by ₹1,000–1,200 crore by FY26 but believes leverage will remain comfortable due to strong free cash flows.
Nomura reiterated a buy rating with a target price of ₹4,037, suggesting a 20 percent upside from CMP. The brokerage said Camso’s benefits are likely to be visible by FY27–28, with GST cuts further making Ceat a key beneficiary of demand uptick from OEMs and the replacement segment. It flagged integration challenges as a near-term focus but stressed that the long-term potential remains intact.
Nuvama upgraded Ceat to buy with a target price of ₹3,900, offering a 16 percent upside from CMP. It highlighted that Camso’s current revenue run-rate is around $130–150 million with utilisation at 50 percent. Nuvama expects EBITDA margins, currently in the low-teens, to improve to 20 percent in the medium term, supported by phased payments of $138 million upfront, followed by $43 million in FY27 and $44 million in FY29.
Overall, brokerages see Camso’s acquisition as a long-term positive for Ceat, with varying expectations on the pace of integration and margin expansion.
Disclaimer: The views and investment recommendations expressed above are those of the respective brokerages. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.