Shares of tyre maker Ceat have shown huge value appreciation after reported a strong operational performance in Q2 (July-September).
Ceat stock has touched a record high of Rs 385 on January 7 2014, rallied nearly 200% from Rs 122 as on September 30 2013 on the BSE. On the hand, its peers like MRF, Apollo Tyres, JK Tyres and TVS Srichakra have gained between 40- 100%, while the benchmark S&P BSE Sensex has gained 7% during the same period.
The company’s consolidated EBITDA or operating margins improved by nearly 700 bps to 13.8% in Q2 compared to 7.2% in the previous year quarter. Improvement in EBITDA margin was driven by superior product-mix and also on account of the better realization on the exports.
It now appears that foreign institutional investors (FIIs) have increased their stake in the company substantially in October-December (Q3) rally.
The shareholding pattern as on December 2013 indicates that FIIs have increased their stake in the company to 8.22%. The total FII stake in the company by September 2013 was mere 0.03%.
The number for FIIs holding stake in the company has increased to 37 from 13 earlier. Morgan Stanley Asia (Singapore) has bought 2.12% stake in Q3 against nil holding at the end of Q2.
Domestic institutional investors (DII) however, booked the profit in stock by offloading 3.4% of their holdings during the quarter. Total DIIs stake in the company declined to 6.73% from 10.13%.
It also appears that the insurance giant Life Insurance Corporation of India (LIC) and SBI Magnum Balanced Fund has sold their entire stake in Ceat during the rally as their holding in the company declined to below 1% mark. LIC had 2.19% stake, while SBI Magnum Balanced Fund held 1.53% stake in the company.
Among the individual investors Chandra Singh Lodha (1.29%) and Manish Gupta (1.12%) too, sold their entire holding as their stake in the company declined to below 1% mark, the shareholding pattern data shows.
Meanwhile, analysts have recommend a ‘Buy’ rating on the stock, considering improving operating performance lead by increasing utilization and changing product mix, reduction in debt levels and expanding presence.
Ceat stock has touched a record high of Rs 385 on January 7 2014, rallied nearly 200% from Rs 122 as on September 30 2013 on the BSE. On the hand, its peers like MRF, Apollo Tyres, JK Tyres and TVS Srichakra have gained between 40- 100%, while the benchmark S&P BSE Sensex has gained 7% during the same period.
The company’s consolidated EBITDA or operating margins improved by nearly 700 bps to 13.8% in Q2 compared to 7.2% in the previous year quarter. Improvement in EBITDA margin was driven by superior product-mix and also on account of the better realization on the exports.
It now appears that foreign institutional investors (FIIs) have increased their stake in the company substantially in October-December (Q3) rally.
The shareholding pattern as on December 2013 indicates that FIIs have increased their stake in the company to 8.22%. The total FII stake in the company by September 2013 was mere 0.03%.
The number for FIIs holding stake in the company has increased to 37 from 13 earlier. Morgan Stanley Asia (Singapore) has bought 2.12% stake in Q3 against nil holding at the end of Q2.
Domestic institutional investors (DII) however, booked the profit in stock by offloading 3.4% of their holdings during the quarter. Total DIIs stake in the company declined to 6.73% from 10.13%.
It also appears that the insurance giant Life Insurance Corporation of India (LIC) and SBI Magnum Balanced Fund has sold their entire stake in Ceat during the rally as their holding in the company declined to below 1% mark. LIC had 2.19% stake, while SBI Magnum Balanced Fund held 1.53% stake in the company.
Among the individual investors Chandra Singh Lodha (1.29%) and Manish Gupta (1.12%) too, sold their entire holding as their stake in the company declined to below 1% mark, the shareholding pattern data shows.
Meanwhile, analysts have recommend a ‘Buy’ rating on the stock, considering improving operating performance lead by increasing utilization and changing product mix, reduction in debt levels and expanding presence.
