Tyre Stocks in India – Tyre Stocks

The Indian tyre industry is dynamic, driven by robust demand from automotive sectors and infrastructure growth. Major players like Apollo Tyres and MRF lead the market, offering promising investment opportunities. With rising vehicle ownership and a focus on technological advancements, tyre stocks present potential for significant long-term gains.

The table below shows the tyre stocks in India, sorted by highest market capitalisation and 1-year return.

Introduction to Best Tyre Stocks In India

Kesoram Industries Ltd

The Market Cap of Kesoram Industries Ltd is Rs. 6,578.92 crores. The stock’s monthly return is 1.66%. Its one-year return is 113.69%. The stock is 4.90% away from its 52-week high.

Kesoram Industries Limited, an Indian company, is involved in the manufacturing of clinker and cement. The company has two segments: Cement and Rayon, T.P. and Chemicals. In the Cement segment, they sell cement under the brand name Birla Shakti Cement. 

The Rayon, T.P. and Chemicals segment offers rayon, transparent paper, and filament yarn under the Kesoram Rayon brand. Kesoram operates two cement plants, one in Karnataka and the other in Telangana. Their transparent paper is available in small reels for packaging food items. Viscose filament yarn (VFY), a cellulosic fibre made from wood pulp, is sold in different forms like cones, hanks, and cakes, with various finishes including bright, dull, snow white, and colored.  

PTL Enterprises Ltd

The Market Cap of PTL Enterprises Ltd is Rs. 590.27 crores. The stock’s monthly return is 1.34%. Its one-year return is 20.68%. The stock is 21.33% away from its 52-week high.

PTL Enterprises Ltd. (PTL) is an India-based holding company engaged in the manufacturing of automobile tyres, flaps, and belts. The company produces truck-bus cross-ply tyres at its plant, which are leased to Apollo Tyres Ltd. 

These tyres are then sold or exported under the Apollo brand name by Apollo Tyres Ltd. PTL Enterprises Ltd. has several subsidiaries, including Sunrays Properties & Investment Co. Pvt. Ltd., Classic Industries and Exports Limited, Sunrays Global Consultants LLP, Vilas Polymers Ltd.

Balkrishna Industries Ltd

The Market Cap of Balkrishna Industries Ltd is Rs. 57,486.73 crores. The stock’s monthly return is -6.45%. Its one-year return is 23.07%. The stock is 13.49% away from its 52-week high.

Balkrishna Industries Limited, an Indian company, specializes in manufacturing and selling off-highway tyres for various industries including agriculture, construction, mining, forestry, and all-terrain vehicles. 

The company’s range of products cater to agricultural machinery such as tractors, harvesters, and telehandlers, as well as industrial equipment like forklifts, excavators, and cranes. Additionally, they offer tyres for off-road vehicles like dump trucks, mining vehicles, and scrapers.

MRF Ltd

The Market Cap of MRF Ltd is Rs. 56,941.90 crores. The stock’s monthly return is -1.17%. Its one-year return is 22.73%. The stock is 12.80% away from its 52-week high.

MRF Limited, a holding company based in India, specializes in the manufacturing and sales of tyres, tubes, flaps, tread rubber, and dealing in rubber and rubber chemicals. In addition, the company’s international operations cover a wide range of tyre categories including heavy-duty truck/bus tyres, light trucks, passenger cars, motorsports, and more. 

The company’s sports goods comprise the Virat Kohli range, English Willow range, Kashmir Willow range, and protective gear. MRF Limited’s wholly-owned subsidiaries include MRF Corp Ltd., MRF Lanka Pvt. Ltd., and MRF SG PTE LTD.

TVS Srichakra Ltd

The Market Cap of TVS Srichakra Ltd is Rs. 3,401.80 crores. The stock’s monthly return is 4.22%. Its one-year return is 51.41%. The stock is 14.73% away from its 52-week high.

TVS Srichakra Limited, an India-based company, produces a variety of tyre brands including TVS Eurogrip, Eurogrip, and TVS Tyres. The company manufactures and exports tyres for two and three-wheelers, as well as off-highway vehicles. 

Its primary business segment is Automotive Tyres, Tubes, and Flaps. Within India, the company supplies tyres to original equipment manufacturers (OEMs) and the replacement market through a network of depots, distributors, and retailers. Its products are distributed in more than 85 countries worldwide and include two and three-wheeler tyres, all-terrain vehicle tyres, construction tyres, industrial pneumatic tyres, earthmover tyres, agriculture tyres, and multi-purpose tyres.  

Apollo Tyres Ltd

The Market Cap of Apollo Tyres Ltd is Rs. 32,247.25 crores. The stock’s monthly return is -3.60%. Its one-year return is 32.83%. The stock is 11.88% away from its 52-week high.

Apollo Tyres Limited is involved in the production and distribution of automotive tyres across various segments such as automobile tubes and automobile flaps. The company operates in geographical segments including Asia Pacific, Middle East, and Africa (APMEA), Europe, and others. 

It serves distinct consumer groups through its brands Apollo and Vredestein. The Apollo brand offers a wide range of tyres for commercial, passenger vehicles, two-wheelers, farm, and industrial use. The Vredestein brand provides products like car tyres, tyres for agricultural and industrial machinery, and bicycle tyres. 

Tinna Rubber and Infrastructure Ltd

The Market Cap of Tinna Rubber and Infrastructure Ltd is Rs. 2,940.28 crores. The stock’s monthly return is -5.79%. Its one-year return is 312.03%. The stock is 26.96% away from its 52-week high.

Tinna Rubber and Infrastructure Limited is an India-based company primarily engaged in recycling waste/end-of-life tyres (ELT) and manufacturing value-added products derived from these tyres.

Its products include ultra-fine high-structure tyres, high-tensile reclaim rubber, high-carbon steel shots, high-carbon steel scrap, rubberized asphalt (CRMB), polymer-modified bitumen (PMB), and bitumen emulsion. The company offers end-to-end solutions in sourcing, processing, and manufacturing value-added products from waste tyres.  

GRP Ltd

The Market Cap of GRP Ltd is Rs. 1,850.21 crores. The stock’s monthly return is -76.17%. Its one-year return is 249.61%. The stock is 38.80% away from its 52-week high.

GRP Limited is an India-based company engaged primarily in manufacturing reclaimed rubber. It produces reclaimed rubber from used tyres, upscaled polyamide from nylon waste, and engineered products die-cut from end-of-life tyres. 

The company also generates power from windmills and manufactures engineering plastics, custom die forms, and polymer composite products. GRP operates across five business verticals: Reclaim Rubber, Engineering Plastics, Repurposed Polyolefins, Polymer Composite, and Custom Die Forms. 

CEAT Ltd

The Market Cap of CEAT Ltd is Rs. 11,554.16 crores. The stock’s monthly return is 12.41%. Its one-year return stands at 27.49%. The stock is currently 6.18% away from its 52-week high.

CEAT Limited, an Indian tyre company, specializes in the manufacturing of automotive tyres, tubes, and flaps. They produce tyres for a wide range of vehicles, including two/three-wheelers, passenger cars, utility vehicles, commercial vehicles, and off-highway vehicles. 

The company’s tyre lineup includes categories for cars, bikes, and scooters. CEAT provides tyres for popular car models such as Maruti Alto, Maruti Swift, and Maruti Wagon R, as well as for various bikes like Hero Splendor, Honda Shine, and Yamaha FZ. For scooters, they offer tyres for models like Honda Activa and TVS Jupiter.  

JK Tyre & Industries Ltd

The Market Cap of JK Tyre & Industries Ltd is Rs. 10,820.03 crores. The stock’s monthly return is -0.76%. Its one-year return is 56.84%. The stock is 33.48% away from its 52-week high.

JK Tyre & Industries Limited, an Indian tire manufacturer, along with its subsidiaries, is involved in the development, production, marketing, and distribution of automotive tires, tubes, flaps, and retreads. The company operates in segments including India, Mexico, and other regions. 

JK Tyre sells its tires to vehicle manufacturers for original equipment fitment and also in replacement markets globally, catering to various vehicle segments such as passenger vehicles, commercial vehicles, farming equipment, off-road vehicles, and two and three-wheelers. The company offers products like puncture guards for preventing punctures, Smart Tyre technology, and Tyre Pressure Monitoring Systems with TREEL sensors monitoring tire pressure and temperature. 

What Are Tyre Stocks In India?

Tyre stocks in India refer to shares of companies that manufacture and sell tyres. These stocks represent an investment in businesses involved in producing various types of tyres for vehicles, ranging from passenger cars to commercial trucks and two-wheelers.   

The tyre industry in India is significant due to the growing automotive sector and increasing vehicle ownership. Companies in this sector may be publicly traded on stock exchanges, allowing investors to buy shares and potentially benefit from the industry’s growth and profitability.

Features of Top Tyre Stocks in India

The key features of top tyre stocks in India stand out for their consistent market leadership, innovative technologies, and strong financial performance. These companies excel due to their extensive distribution networks and robust R&D investments, making them attractive for investors seeking long-term growth.

1. Market Leadership: Leading tyre companies in India, such as MRF and Apollo Tyres, dominate the market with extensive reach and strong brand recognition. Their substantial market share reflects stability and industry influence, providing reliable investment prospects.
2. Technological Advancements: Top tyre stocks benefit from continuous innovation in tyre technology. Companies invest significantly in R&D to enhance performance, durability, and safety features, ensuring they meet evolving consumer demands and regulatory standards.
3. Financial Stability: These companies demonstrate robust financial health, characterized by steady revenue growth, strong profit margins, and sound balance sheets. Their financial stability makes them attractive to investors looking for low-risk opportunities.
4. Extensive Distribution Network: A wide and efficient distribution network is crucial for tyre companies. Top stocks benefit from well-established supply chains and distribution channels, ensuring broad market reach and effective product availability.
5. Strategic Partnerships: Leading tyre companies often engage in strategic partnerships with automotive manufacturers and international firms. These alliances enhance market access, facilitate technological exchange, and strengthen their competitive edge in the global market.

Best Tyre Stock in India Based on 6 Month Return

The table below shows the best tyre stock in India based on a 6-month return.

Tyre Stocks in India Based on 5 Year Net Profit Margin

The table below shows the tyre stocks in India based on 5-year net profit margin.

Tyre Stocks List Based on 1M Return

The table below shows the tyre stocks list based on a 1-month return.

High Dividend Yield Tyre Stocks List

The table below shows the list of high dividend yield tyre stocks.

Historical Performance of Tyre Stock in India

The table below shows the historical performance of tyre stock in India.

Factors to Consider When Investing in Tyre Sector in India

The factors to consider when investing in the tyre sector in India require evaluating key elements such as market demand, financial health, and technological innovation. Assessing these factors helps identify companies with strong growth potential and stable returns.

1. Market Demand: Evaluate the overall demand for tyres in the automotive and industrial sectors. High vehicle ownership and infrastructure development in India drive consistent demand, making it crucial to choose companies aligned with market growth trends.
2. Financial Performance: Analyze the financial stability of tyre companies by reviewing their revenue, profit margins, and debt levels. Strong financial health indicates a company’s ability to withstand economic fluctuations and sustain long-term investment potential.
3. Technological Innovation: Consider the company’s investment in R&D and technological advancements. Companies leading in tyre technology often enjoy a competitive edge through enhanced product performance, safety, and fuel efficiency, which can influence their market position.
4. Regulatory Environment: Stay informed about regulatory changes affecting the tyre industry, such as emission standards and safety regulations. Compliance with these regulations ensures operational stability and reduces potential legal and financial risks.
5. Competitive Landscape: Assess the competitive environment within the tyre sector. Understanding the market position and strategies of key competitors helps gauge a company’s relative strength and potential for maintaining or growing its market share.

How to Invest in Best Tyre Stocks in India in 2024?

To invest in the best tyre stocks in India in 2024, open a brokerage account with platforms like  Alice Blue. Research leading tyre companies such as MRF, Apollo Tyres, and CEAT, evaluating their financials and market trends. Consider long-term growth potential in sectors like electric vehicles and exports.

Impact of Government Policies on Tyre Stocks India

Government policies significantly impact tyre stocks in India. Regulatory changes, such as stricter emission norms and safety standards, can drive demand for high-quality, technologically advanced tyres, benefiting companies that adapt quickly. 

Additionally, subsidies or tax incentives for manufacturing and export can boost profitability for tyre manufacturers. Conversely, increased duties on raw materials or restrictions on imports may raise production costs, potentially affecting stock performance. 

Investors should monitor policy developments closely, as they directly influence the operational landscape and financial health of tyre companies.

How Tyre Company Stocks In India Perform in Economic Downturns?

During economic downturns, tyre company stocks in India often face challenges due to reduced consumer spending and lower vehicle sales. Lower demand for new vehicles can lead to decreased sales of replacement tyres, impacting company revenues and stock performance. 

However, some tyre companies may mitigate these effects through cost control measures and diversified product offerings. Strong financial management and the ability to adapt to changing market conditions can help these companies weather economic slowdowns better than others. Investors should evaluate individual company strategies to gauge resilience.

Advantages Of Investing In Best Tyre Stocks In India?

The primary advantage of investing in the best tyre stocks in India is their consistent demand driven by the automotive sector. As vehicle ownership grows, tyre companies benefit from increased replacement and maintenance needs.

1. Strong Market Presence: Tyre companies with a solid market presence enjoy a competitive edge and stability. Established brands often have robust distribution networks and brand loyalty, which contribute to consistent revenue and lower volatility in their stock prices.
2. Growth in Vehicle Sales: With the rise in vehicle ownership in India, the demand for tyres is expected to increase. This trend benefits tyre manufacturers as they experience higher sales volumes, leading to potential revenue growth and enhanced investor returns.
3. Technological Advancements: Tyre companies investing in research and development can offer advanced products, such as fuel-efficient or high-performance tyres. These innovations can lead to increased market share and higher profit margins, making them attractive to investors.
4. Government Initiatives: Government policies and initiatives aimed at boosting the automotive sector, including infrastructure development and subsidies, can positively impact tyre companies. Such supportive measures can drive industry growth, enhancing the profitability of tyre stocks.
5. Export Potential: Indian tyre manufacturers are expanding their reach into international markets, leveraging competitive pricing and quality. This export potential can diversify revenue streams and reduce dependence on the domestic market, providing growth opportunities for investors.

Risks of investing in Top Tyre Stocks in India?

The main risk of investing in top tyre stocks in India involves the volatility of raw material prices. Fluctuations in the cost of key inputs like rubber can significantly impact profit margins and overall financial stability.

1. Economic Slowdowns: Economic downturns or slowdowns can reduce vehicle sales and, consequently, the demand for tyres. Lower sales impact revenue and profitability for tyre companies, posing risks to investors as market conditions become less favorable.
2. Intense Competition: The tyre industry is highly competitive, with numerous domestic and international players. Intense competition can lead to price wars, reducing profit margins and affecting the financial performance of tyre companies, thus increasing investment risk.
3. Regulatory Changes: Changes in environmental and safety regulations can impose additional compliance costs on tyre manufacturers. These regulatory shifts may impact operational efficiency and profitability, creating uncertainties for investors regarding the future financial performance of tyre stocks.
4. Supply Chain Disruptions: Disruptions in the supply chain, such as natural disasters or geopolitical issues, can affect the availability and cost of raw materials. These disruptions can lead to production delays and increased costs, impacting profitability and investor returns.
5. Technological Disruptions: Advancements in vehicle technology, like electric vehicles or alternative propulsion systems, may affect tyre demand. If tyre companies cannot adapt to these changes quickly, they might face reduced market share, impacting stock performance and investor returns.

Tyre Stocks Listed in NSE GDP Contribution

Tyre stocks listed on the NSE play a significant role in the Indian economy, contributing notably to the GDP. These companies are integral to the automotive sector, which supports various industries through vehicle production, transportation, and logistics. The robust growth in vehicle sales and increased infrastructure development further boosts demand for tyres, reflecting positively on these stocks.

Moreover, the tyre industry benefits from both domestic and international markets, enhancing its contribution to GDP. Innovations in tyre technology and growing consumer awareness about quality and safety drive further growth and investment opportunities in this sector.

Who Should Invest in Best Tyre Stocks in India NSE?

Investing in the best tyre stocks listed on the NSE can be a strategic move for those interested in the growth of the automotive sector. These stocks can offer promising returns due to increased demand and industry advancements.

1. Long-Term Investors: Those looking for stable, long-term growth can benefit from the steady demand for tyres driven by the expanding automotive sector and infrastructure projects.
2. Automotive Sector Enthusiasts: Investors with a keen interest in the automotive industry will find tyre stocks appealing due to their integral role in vehicle production and maintenance.
3. Growth Seekers: Individuals seeking growth opportunities in emerging markets will find tyre stocks attractive, given the sector’s potential for expansion in developing economies.
4. Value Investors: Those focused on undervalued assets may find opportunities in tyre stocks, especially if market conditions or company fundamentals present attractive investment valuations.
5. Diversifiers: Investors looking to diversify their portfolios with stocks from different sectors will benefit from adding tyre stocks, which provide exposure to the automotive and manufacturing industries.

Top Tyre Stocks In India – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.