CEAT shares crash 9% after Q1 net profit tumbles 96% YoY to Rs 4 crore. What lies ahead?

CEAT shares plunged 9% to about Rs 3,471 on NSE after Q1 net profit collapsed 96% year-on-year to Rs 4 crore from Rs 112 crore, driven by raw material cost inflation linked to the West Asia crisis. Despite the profit drop, revenue from operations grew 22% YoY to Rs 4,318 crore, supported by healthy volume growth across segments. The board approved a Rs 1,205 crore capex for expanding two-wheeler tyre capacity, and Motilal Oswal maintained a Buy call with valuations at 25.2x/16.3x FY27E/FY28E P/E.