Shares of CEAT opened flat on March 16 despite the company signing a deal to supply agricultural radial tires to CNH Industrial. The stock continues to decline from the December 2022 level of 1,900.

The stock opened at Rs 1,392.05 on the BSE, 0.24% lower than its previous close of around Rs 1,395.

CEAT Specialty, a division of CEAT, has signed an agreement with the UK-based company to supply tires to the latter’s production facilities in Brazil and Argentina.

CEAT Specialty manufactures off-highway tire (OHT) segments for agriculture, construction and industry use. It launched its agricultural radial segment in 2017, and company management has expressed interest in expanding its offerings in the OTR (off-road) segment. CNH Industrial signed the agreement after several rounds of audits and assessments of CEAT Specialty’s radial plant in Ambernath, the company said in a press statement.

Though the stock corrected more than 15% over the past three months, Wall Street’s sentiment appears to improve. Analysts commented on CEAT’s push towards automation and its improved profitability. CEAT’s Halol factory has received the Lighthouse certification from the World Economic Forum, awarded to manufacturing units that effectively adopt Industry 4.0 technologies. The company opened a fully automated warehouse in Chennai earlier this month.

The stock traded at Rs 1,382 at 9:30 am, 0.9% below its previous close.