Shares of Ceat Ltd. are witnessing a bout of profit booking on Friday after ending Thursday's session locked in a 20 percent upper circuit.

The stock surged post positive management commentary at its investor's meet. According to the management, demand in the near term is expected to be strong driven by the original equipment segment.

However, the company expects exports and domestic rural demand to remain subdued in the near term. Also, the company expects margins to remain stable on a quarter-on-quarter basis despite a slight increase in commodity prices.

The management expects to go back to a 10-12 percent margin versus the 6 percent margin that they reported in Q1FY23.

Ceat's move on Thursday was the stock's best single-day move since September 2014.

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First Published:Sept 15, 2022 5:30 PM IST