Shares of Ceat hit an all-time high of Rs 2,078 in intraday trade on Wednesday, up 5% on the BSE, extending gains after the company’s margin expansion returned to double digits in the January-March quarter (Q4FY23). The stock hit an all-time high of Rs 2,030 on December 27, 2017.

Ceat has outperformed the market so far in May, gaining more than 46% compared with a 1.6% gain for the S&P BSE Sensex.

Lower raw material prices and sustained product realization helped expand gross margin and Ebitda margin by 422 basis points in Q4FY23.

In Q4FY23, Ceat crossed the important milestone of Rs 10,000 crore in revenue and closed the financial year with revenue of Rs 11,263 crore. The company posted strong growth of 21% in FY23, driven by both volume and pricing.

Growth during the year was primarily driven by OEMs and speciality and passenger vehicle tires. On the export front, Ceat said it continued to come under pressure due to global economic headwinds, largely spurred by the ongoing war and currency depreciation.

However, management said the company has started to see some recovery in export and substitution markets, especially in the commercial category. Management expects growth to accelerate further in the coming quarters as commodity prices remain stable and global inflation moderates.

The stock trades above brokerage Prabhudas Liladher’s price target of Rs 1,800 per share.