Shares of tyre manufacturer CEAT gained 2 percent to Rs 3,720 in morning trade before paring gains on June 4 after a slew of brokerages issued bullish calls on the counter, citing robust levers for growth in the coming quarters.

CLSA has given an 'Outperform' rating with a target price of Rs 3,933 per share. The brokerage sees the integration of Camso and overall margin recovery as key near-term priorities for the company. CEAT is aiming to expand its share in the truck and bus radial (TBR) replacement market, while the recently completed Camso acquisition holds a revenue potential of USD 1.2 billion over the next three years. CLSA also highlighted that CEAT is entering a margin upcycle, supported by the easing of raw material costs, and expects a margin expansion of 200–300 basis points in FY26.

Nuvama has reinstated 'Buy' on the company and assigned a target price of Rs 3,800 per share, an upside potential of over 4 percent. The brokerage is upbeat about the company’s FY26 exports outlook, which it expects to be strong. However, domestic replacement growth is likely to remain in single digits. CEAT gained market share in key segments such as two-wheelers, truck and bus radials (TBR), and electric passenger car radials (E-PCR) in FY25, and is now targeting further gains in the PCR and TBR segments.

Nuvama also highlighted the positive impact of the Camso acquisition, which has increased the share of high-margin off-highway tyres (OHT) and exports in overall revenue from 15 percent and 19 percent to 25 percent and 26 percent, respectively. The brokerage is building in a revenue and EBITDA CAGR of 14 percent and 26 percent, respectively, for FY25–27.

Nomura also maintained its 'Buy' rating on CEAT, with a higher target price of Rs 3,945 per share. It noted the company’s continued focus on growing ahead of the industry despite rising competition. Initiatives around the Camso business are expected to help CEAT regain lost ground. Nomura sees steady market share gains across the two-wheeler and passenger car radial (PCR) replacement segments. A continued push in the OEM and export segments is likely to support an 11 percent revenue CAGR over FY25–27. The brokerage also expects the share of OHT in revenue mix to climb to 25 percent by the second half of FY26 — the highest among peers.

The company posted a mixed performance for the March 2025 quarter, as profit declined despite solid revenue growth. Net profit fell 8.4 percent year-on-year to Rs 99.5 crore, down from Rs 108.6 crore in the same period last year, weighed down by weaker operating performance and margin compression.

Revenue from operations grew 14.3 percent to Rs 3,420.6 crore, compared to Rs 2,991.9 crore in Q4 FY24, supported by robust demand across key segments. EBITDA declined marginally by 0.9 percent to Rs 388 crore, while operating margins slipped to 11.3 percent from 13.1 percent a year ago, hurt by input cost pressures and an unfavourable product mix.

At about 9:20 am, shares of the company were trading at Rs 3,661, higher by 0.5 percent from the last close on the NSE. CEAT shares have risen over 13 percent since the beginning of the year.