CEAT shares extend slide, drop 6%; here's what analysts say

Shares of CEAT Ltd continued to fall for the fifth consecutive session on Monday. The stock slumped 5.92 per cent to settle at Rs 3,601.15. At this closing price, it has corrected 8.95 per cent in the last five trading days.

The tyremaker reported a 9.2 per cent year-on-year (YoY) decline in profit after tax (PAT) to Rs 135 crore in Q1 FY26, compared to Rs 149 crore in the same quarter last year. However, revenue for the quarter rose 11.1 per cent to Rs 3,521 crore, up from Rs 3,168 crore in the year-ago period.

A few analysts indicated that the stock's near-term outlook remains weak, with one recommending against fresh buying at current levels.

According to Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, CEAT witnessed a sharp decline today, and the near-term outlook remains weak, with immediate support pegged at Rs 3,500. "A breach below this level could trigger further correction towards the Rs 3,400 zone. On the upside, resistance is expected between Rs 3,700 and Rs 3,750, with a stronger hurdle seen near the Rs 3,900 mark in the short term," he added.

Drumil Vithlani, Technical Research Analyst at Bonanza, noted, "CEAT has been experiencing significant selling pressure and is forming a strong bearish candle, indicating rising downside momentum. With key support levels now breached, the stock is likely to stay under pressure. Fresh entries should be avoided at current levels unless there are clear signs of base formation or a reversal."

The scrip traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 42.69. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-earnings (P/E) ratio of 30.22 against a price-to-book (P/B) value of 3.53. Earnings per share (EPS) stood at 119.18 with a return on equity (RoE) of 11.70. According to Trendlyne data, CEAT has a one-year beta of 1, indicating average volatility.

As of June 2025, promoters held a 47.21 per cent stake in the company.