CEAT on a roll after turnaround Q2 results

CEAT surged 3.24% to Rs 162.60 at 9:56 IST on BSE, after the company reported

net profit of Rs 61.47 crore in Q2 September 2009 as compared to net loss of Rs

28.80 crore in Q2 September 2008.

Meanwhile, the BSE Sensex was down 83.29 points, or 0.51%, to 16,270.11.

On BSE, 31,585 shares were traded in the counter as against an average daily

volume of 1.13 lakh shares in the past one quarter.

The stock hit a high of Rs 163 and a low of Rs 159.25 so far during the day. The

stock had hit a 52-week high of Rs 190.65 on 20 October 2009 and a 52-week low of

Rs 31 on 9 March 2009.

The small-cap stock had underperformed the market over the past one month till 27

October 2009, falling 4.69% as compared to the Sensex's 2.03% fall. It had

outperformed the market in the past one quarter, rising 21.11% as compared to the

Sensex's return of 6.36%.

The company's equity capital is Rs 34.24 crore. Face value per share is Rs 10.

The current price of Rs 162.60 discounts the company's Q1 June 2009 annualized

EPS of Rs 70.33, by a PE multiple of 2.27.

CEAT's net sales rose 9.25% to Rs 714.50 crore in Q2 September 2009 over Q2

September 2008. The company declared the results after market hours on Tuesday,

27 October 2009.

Fall in raw material costs helped CEAT achieve a turnaround in Q2 September 2009.

CEAT, previously Ceat Tyres, is the flagship of the RPG group, manufactures steel-

belted radials for passenger cars. The range of tyres manufactured is marketed

under the Ceat, Samraat and Secura brand names