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

Balkrishna Industries Ltd

The Market Cap of Balkrishna Industries Ltd is ₹52,565.84 crores. The stock’s 1-month return is -1.51%, while its 1-year return is 13.88%. It is currently 21.70% away from its 52-week high.

Balkrishna Industries is a major player in the tire manufacturing sector, specializing in off-highway tires for agricultural, industrial, and construction vehicles. The company has established itself as a reliable name in the global market with a strong distribution network and innovative product offerings. Despite a minor decline in its monthly return, its yearly performance remains strong, indicating steady demand for its products.

The company’s growth is driven by robust exports and investments in technology to enhance production capabilities. It continues to expand its footprint in international markets, leveraging its cost-effective production strategies. The stock’s distance from its 52-week high suggests potential for further growth, making it an interesting option for long-term investors.

MRF Ltd

The Market Cap of MRF Ltd is ₹47,871.94 crores. The stock’s 1-month return is -5.10%, while its 1-year return is -22.79%. It is currently 0.94% away from its 52-week high.

MRF Ltd is one of India’s largest tire manufacturers, serving both domestic and international markets. The company produces a wide range of tires catering to automobiles, trucks, and heavy-duty vehicles. However, the stock has witnessed a decline over the past year due to challenges in the automotive industry and fluctuating raw material prices.

Despite its struggles, MRF maintains a strong brand presence and a solid reputation in the market. With a focus on research and development, it aims to introduce more fuel-efficient and durable tires. Given that the stock is close to its 52-week high, it suggests investor confidence, potentially driven by expectations of a market recovery.

Apollo Tyres Ltd

The Market Cap of Apollo Tyres Ltd is ₹27,064.83 crores. The stock’s 1-month return is -10.47%, while its 1-year return is -17.55%. It is currently 3.84% away from its 52-week high.

Apollo Tyres is a well-known player in the Indian and international tire market, with a strong focus on passenger and commercial vehicle segments. The company has a diverse product portfolio and an extensive distribution network, helping it maintain a competitive edge. However, recent market conditions have impacted its returns, leading to a decline in stock value.

Despite short-term challenges, Apollo Tyres continues to focus on expanding its presence in global markets, particularly in Europe. The company is also investing in new technologies to develop eco-friendly tires. With the stock trading close to its 52-week high, investors remain optimistic about its future growth prospects.

CEAT Ltd

The Market Cap of CEAT Ltd is ₹11,617.87 crores. The stock’s 1-month return is -7.77%, while its 1-year return is 6.06%. It is currently 29.41% away from its 52-week high.

CEAT Ltd is a prominent tire manufacturer known for its high-quality products catering to various automotive segments. The company has seen moderate growth over the past year, with a positive annual return despite recent short-term fluctuations. Its investments in innovation and sustainability continue to position it favorably in the industry.

The company has been focusing on expanding production capacity and improving operational efficiency to drive growth. While the stock is significantly below its 52-week high, this could present an opportunity for investors looking for potential upside in the future.

JK Tyre & Industries Ltd

The Market Cap of JK Tyre & Industries Ltd is ₹8,365.83 crores. The stock’s 1-month return is -17.65%, while its 1-year return is -38.22%. It is currently 0.55% away from its 52-week high.

JK Tyre & Industries is one of India’s leading tire manufacturers, known for its innovative product offerings and extensive distribution network. The company has faced significant challenges over the past year, leading to a decline in stock performance. However, its strong presence in the replacement market and exports have helped sustain business operations.

With a focus on research and development, JK Tyre is working on next-generation tires to improve performance and durability. Despite the recent decline, its proximity to the 52-week high suggests investor confidence in its long-term growth potential.

Kesoram Industries Ltd

The Market Cap of Kesoram Industries Ltd is ₹6,890.21 crores. The stock’s 1-month return is 3.15%, while its 1-year return is 29.98%. It is currently 38.56% away from its 52-week high.

Kesoram Industries is a diversified business group with interests in cement, textiles, and tires. The company has delivered a strong annual return, reflecting investor optimism and operational improvements. Despite this, it remains significantly below its 52-week high, indicating room for future growth.

With ongoing expansion plans and increasing market demand for its products, Kesoram Industries is well-positioned to capitalize on emerging opportunities. The company’s performance will depend on its ability to manage costs and drive efficiencies in production.

TVS Srichakra Ltd

The Market Cap of TVS Srichakra Ltd is ₹2,414.99 crores. The stock’s 1-month return is -6.63%, while its 1-year return is -25.54%. It is currently 3.60% away from its 52-week high.

TVS Srichakra is a leading manufacturer of two-wheeler and three-wheeler tires, catering to both domestic and export markets. Despite a challenging year, the company continues to invest in R&D to develop high-performance tires.

The stock’s recent decline indicates short-term market concerns, but its close proximity to the 52-week high suggests investor confidence in long-term recovery. TVS Srichakra’s focus on exports and technology-driven solutions positions it well for future growth.

Goodyear India Ltd

The Market Cap of Goodyear India Ltd is ₹2,180.94 crores. The stock’s 1-month return is -5.93%, while its 1-year return is -27.42%. It is currently 3.68% away from its 52-week high.

Goodyear India is a subsidiary of the global tire giant, Goodyear, and serves the Indian market with a range of high-quality tires. The company has faced market headwinds, leading to a significant drop in stock performance over the past year.

Despite these challenges, Goodyear India continues to benefit from its parent company’s expertise and technological advancements. Its strong brand and expanding dealer network support its long-term growth prospects.

Tinna Rubber and Infrastructure Ltd

The Market Cap of Tinna Rubber and Infrastructure Ltd is ₹2,067.27 crores. The stock’s 1-month return is -12.86%, while its 1-year return is 60.95%. It is currently 81.19% away from its 52-week high.

Tinna Rubber specializes in recycled rubber products used in road construction and various industrial applications. The company has delivered a remarkable annual return, indicating strong investor interest and business expansion.

As sustainability becomes a key focus in the industry, Tinna Rubber is well-positioned to leverage its expertise in recycled materials. The stock’s significant gap from its 52-week high suggests potential volatility but also opportunities for future appreciation.

GRP Ltd

The Market Cap of GRP Ltd is ₹1,459.49 crores. The stock’s 1-month return is -18.31%, while its 1-year return is 112.27%. It is currently 117.71% away from its 52-week high.

GRP Ltd specializes in reclaim rubber and recycled polymer solutions, catering to the tire and non-tire rubber industries. The company has seen significant stock appreciation over the past year, reflecting strong demand for its products.

Despite short-term fluctuations, GRP Ltd’s focus on sustainability and innovative solutions positions it well for continued growth. The stock’s performance indicates strong investor confidence in its long-term potential.

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.