Blog >

Best Tyre Stocks In India To Buy In 2024

Best Tyre Stocks In India To Buy In 2024

tyre stocks in india - stockdaddy

India's automotive industry has been a driving force in the nation's economic growth, with the tire sector playing a pivotal role. The tire industry is a cornerstone of India's economic landscape, contributing significantly to employment and GDP. 

Within tyre sector, key players such as Apollo Tyres, Ceat, MRF, JK Tyres, and Balakrishna Industries hold strategic positions, shaping the trajectory of the industry. These companies go beyond simple market presence and the shares of these companies are among the best tyre stocks in India.

 

With options trading course learn to predict the price movement of a stock using historical data and volume.

 

 

Factors Driving Tyre Demand


A. Increased Car Ownership

The affordability of cars has soared, especially in emerging markets. The subsequent rise in car ownership, particularly of larger vehicles like SUVs and trucks, fuels the need for more and larger tyres.

 

B. Expansion of Tyre Buying and Selling Business

E-commerce has reshaped the tyre market. The ease of online purchases has spurred the growth of businesses, intensifying competition, and ultimately benefiting consumers by driving down prices.

 

C. Growing Interest in Mobile Tyre Fitting Services

Convenience is paramount, and mobile tyre fitting services offer just that. The demand for these services has surged, contributing to the overall increase in tyre demand.

 

D. Increasing Lifespan of Tyres

Technological advancements and manufacturing improvements have extended the lifespan of tyres. With less frequent replacements, consumers now seek higher quality, longer-lasting tyres.

 

 

Best Tyre Stocks in India to invest in


Here is the tyre share list of the best tyre stocks in India to invest for the future: But one thing every investors need to know how to choose stocks for long term investment by analysing important ration in stock market.

Company Name Share Price (Rs) Market Cap (Cr) Debt to Equity Ratio (ROCE)
Apollo Tyres 28,919 455 0.43 10.20%
CEAT Tyres 9,870 2,440 0.55 9.38%
MRF Tyres 1,18,785 50,365 0.2 7.43%
JK Tyres 379 9,325 1.18 11.10%
Balkrishna Tyres 2,510 48,515 0.35 13.80%

 

1) Apollo Tyres

Apollo Tyres Limited stands as a prominent tire manufacturer based in India, boasting a global footprint. Renowned for its diverse range of top-tier tires catering to passenger cars, commercial vehicles, and off-road applications, the company places a strong emphasis on research and development. This commitment has resulted in the creation of cutting-edge tire technologies that elevate performance, safety, and fuel efficiency resulting in an increase in Apollo Tyres stock price.

In the preceding year, Apollo Tyres has witnessed a favorable trajectory in Apollo tyres stock price, experiencing a growth of approximately 43% from April 2020 to April 2021. Furthermore, the company has consistently achieved growth in both revenue and net profit over the past few years, with a revenue growth rate of around 7% and a net profit growth rate of approximately 11% from FY2019 to FY2020.

 

 

2) CEAT Tyres

CEAT Ltd is a well-known company in the tire manufacturing sector, playing a significant role in the automotive industry through the production of a diverse selection of top-notch tires designed for a variety of vehicles such as cars, trucks, and motorcycles.

CEAT Ltd reported a commendable YoY revenue growth of 4.14%, showcasing a rise from Rs 2,818 crore to Rs 2,935 crore. This financial uptick signifies the company's resilience and adaptability in a competitive market.

The operating profit of CEAT soared to Rs 387 crore, a remarkable surge from Rs 165 crore in the corresponding quarter of the previous year. This leap not only highlights operational efficiency but also translates to an impressive operating profit margin of 13%. Surpassing all expectations, CEAT accomplished a net profit of Rs 144 crore for the same period. 

This not only marks a significant improvement but also stands as the highest net profit achieved in the last eight quarters, solidifying CEAT's financial prowess. In a move to reward its shareholders, CEAT proposed a dividend of Rs 12 per equity share in the Board of Directors meeting on May 04, 2023. The resounding approval in the AGM held on July 05, 2023, culminated in the transfer of Rs 4,854 lakh to the Dividend Escrow Account on July 10, 2023.

 

3) MRF Tyres

In the bustling landscape of India's tyre industry, one name stands tall – MRF, or Madras Rubber Factory. Established in 1946, this iconic brand has not only become synonymous with quality but has also secured its place as the No. 1 tyre in India. MRF, founded in 1946, has been a trailblazer in the Indian tyre industry. With decades of expertise, the company has evolved into a symbol of trust and reliability for millions of vehicle owners. 

With a market capitalization exceeding $8.6 billion, MRF stands as a financial powerhouse in the tyre manufacturing sector. The company's robust financial health reflects its resilience and ability to navigate dynamic market conditions. Investors have found MRF to be an appealing choice, as evidenced by the consistent upward trend in its stock price over the past year, showcasing a commendable growth rate of approximately 76% from April 2020 to April 2021.

MRF's financial performance underscores its robust position in the industry. The company has demonstrated steady growth in both revenue and net profit over the preceding years. Notably, there has been a 6% increase in revenue and a 14% rise in net profit from FY2019 to FY2020, highlighting MRF's resilience and strategic financial management.

 

4) JK Tyre

JK Tyre & Industries Ltd stands tall as a renowned Indian tire manufacturing giant, with a formidable global presence. This article delves into the company's journey, exploring its diverse product range, global outreach, technological prowess, financial standing, and future prospects. 

JK Tyre caters to a wide spectrum of vehicles, from cars and trucks to buses and two-wheelers. The company's commitment to superior quality is reflected in its cutting-edge technology, setting it apart in the fiercely competitive tire industry.

Despite short-term fluctuations, JK Tyre stock price exhibits promising long-term growth potential. This section discusses the factors that position the company for sustained success. JK Tyre & Industries has experienced fluctuations in its stock price over the last year, demonstrating a growth rate of approximately 2% from April 2020 to April 2021. 

The company's financial performance has also been subject to variability in recent years, witnessing a negative revenue growth rate of about -4% and a net profit decline of roughly -55% from the fiscal year 2019 to the fiscal year 2020.

 

5) Balkrishna Industries

Balkrishna Industries, commonly known as BKT, is a leading tire manufacturing company headquartered in India. With a rich history and a focus on cutting-edge technology, BKT has earned a reputation for delivering high-quality tires across diverse segments. BKT boasts a comprehensive product portfolio catering to various vehicles and industries. Specializing in off-highway tires, the company has carved a niche for itself in segments such as agriculture, construction, and industrial vehicles.
The company serves well-known clients such as John Deere, New Holland, JCB, CAT, and Turk Traktor. Operating five manufacturing facilities in India, it has a production capacity of 285 thousand metric tonnes per annum (MTPA).

At present, the company is undergoing expansion of its manufacturing facility through a brownfield project in Waluj, Maharashtra. This expansion aims to boost the company's market share by 10% over the next four to five years.

 

 

Conclusion

In summary, engaging in the tyre industry as an investment can prove lucrative when approached with precision. The aforementioned companies exhibit robust market standings, prioritize innovation, and demonstrate promising prospects, rendering them dependable choices for investment. Nevertheless, it is imperative to undertake comprehensive research and consult with experts before making any stock investments.

stock market courses with stockdaddy
stock market courses for beginners with stockdaddy
stock market learning course with stockdaddy
trading stock market courses with stockdaddy
share market certificate course with stockdaddy
share market courses with stockdaddy
learn stock market trading with stockdaddy
trading stock market courses with stockdaddy