ICICI Securities Recommends 'BUY' on CEAT with Rs 4700 Target

• CEAT reported double-digit revenue growth in Q3FY26, driven by strong replacement business, OE volumes, and export recovery.
• Margin performance exceeded estimates by 60 basis points due to higher operating leverage.
• Near-term demand outlook is strong across all segments, with positive export prospects due to international market recovery.
• CAMSO might affect near-term margin/EPS, but CEAT's medium-to-long term prospects are healthy, expecting EPS accretion post FY28.
• Raw material price increases are a monitorable, but recent GST-led price cuts offer a cushion for future price hikes.

Why It Matters: ICICI Securities maintains a 'BUY' rating on CEAT, setting a target price of Rs 4700 based on strong growth.