RPG Group Tyre Stock Declares Highest-Ever Rs 30 Dividend: Stock Near All-Time High, More Upside Likely?

RPG Enterprises' primary business, CEAT, was founded in 1958. CEAT is currently one of the top tyre producers in India and is well-known around the world. More than 41 million high-performance tyres are produced by CEAT, which serves a variety of markets, including off-highway vehicles, commercial vehicles, passenger and utility vehicles, and two to three-wheelers. The BSE saw Ceat Ltd's shares nearing its all-time high of Rs 3,578 on Friday, closing 1.84% higher at Rs 3376.10. The company's market value was Rs 13,656.36 Cr. Following the Board's announcement of the most notable dividend since its founding and the Q4 results, the stock price experienced buying momentum.

CEAT Dividend

The Board of Directors approved and considered the "Recommendation of Dividend of Rs. 30/- (Rupees Thirty only), i.e. 300% per equity share of face value of Rs. 10/- (Rupees Ten only) each fully paid up, for FY2024-25, subject to approval of shareholders at the ensuing Annual General Meeting, which will be paid / dispatched within 30 days of such approval," said the company in a stock exchange filing.

CEAT Q4 Results

The company's consolidated net sales for the quarter ending in March 2025 were Rs 3,420.62 crore, rising 14.33% from Rs 2,991.85 crore for the quarter ending in March 2024. In Q4FY25, its net profit was Rs. 99.49 crore, an 8.35% drop from Q4FY24's Rs. 108.56 crore. EBITDA dropped by 0.5% from Rs. 394.58 crore in the same quarter of the previous fiscal year to Rs. 392.60 crore in the quarter under review.

Mr. Arnab Banerjee, MD & CEO, CEAT Limited, said, "It was a very satisfying top line performance for the quarter and overall, for the year as we managed to deliver a double-digit growth across all key categories and business verticals. We crossed an important milestone of crossing Rs 13,000 crores of revenue during the year. The Replacement segment delivered strong growth consistently during the year and OEM business delivered strong performance in Q4. We managed to deliver improvement in margins in Q4 versus Q3. We look forward to integrating the CAMSO compact construction business with CEAT in the current year."

Mr. Kumar Subbiah, CFO of CEAT Limited, said, "Our operating margins improved in Q4 by over 120 bps, largely driven by favourable revenue mix and result of strong cost controls across the value chain. We incurred capex of Rs 946 crores during the year largely in capacity additions that would prepare us well to deliver our growth plans in FY 26. During the quarter, we incurred Rs 37 crores towards voluntary separation of employees in one of our high-cost factories as part of our continuous effort to keep our manufacturing units cost competitive."

CEAT Share Price Target

"CEAT is showing strong signs of growth. It's near its highest price ever and is backed by good trading volume. Since it moved above ₹3300, buyers have come in strongly. The price could rise to ₹3500 or ₹3600 soon. The tyre business is doing well, with lower raw material costs and higher demand. You can keep a stop loss at ₹3250 and look to buy more if it comes down a bit," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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