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

MRF Ltd

The Market Cap of MRF Ltd is Rs. 56,177.44 crores. The stock’s one-month return is 9.01%. Its one-year return is 10.09%. The stock is 14.84% away from its 52-week high.

MRF Ltd, established in 1946, began as a small toy balloon manufacturing unit in Chennai. Over the years, it evolved into one of India’s largest tire manufacturers, producing a range of tires for passenger cars, trucks, two-wheelers, and aviation sectors.

Apart from tires, MRF also offers services such as retreading and supplies to motorsports. The company is well-known for its emphasis on quality and innovation, which has made it a trusted brand in both domestic and international markets.

Balkrishna Industries Ltd

The Market Cap of Balkrishna Industries Ltd is Rs. 54,498.05 crores. The stock’s one-month return is 3.63%. Its one-year return is 9.01%. The stock is 19.96% away from its 52-week high.

Balkrishna Industries Ltd (BKT) is a leading global player in the off-highway tire industry, catering to agriculture, construction, and industrial sectors. Founded in 1987, it has carved a niche in specialized tire solutions across more than 160 countries.

With state-of-the-art manufacturing facilities in India, BKT focuses on sustainable practices and technological advancement. The company is committed to offering innovative products that align with customer needs in demanding terrains and industries.

Apollo Tyres Ltd

The Market Cap of Apollo Tyres Ltd is Rs. 34,371.61 crores. The stock’s one-month return is 14.53%. Its one-year return is 21.4%. The stock is 8.11% away from its 52-week high.

Apollo Tyres Ltd, established in 1972, is a prominent tire manufacturer with a strong presence in over 100 countries. It provides high-quality products for passenger vehicles, commercial vehicles, and two-wheelers, combining performance with safety.

Headquartered in Gurugram, India, Apollo Tyres operates several manufacturing facilities globally, including in India and Europe. The company is renowned for its focus on R&D, offering cutting-edge solutions to meet evolving consumer demands.

CEAT Ltd

The Market Cap of CEAT Ltd is Rs. 13,040.91 crores. The stock’s one-month return is 16.65%. Its one-year return is 34.09%. The stock is 12.34% away from its 52-week high.

Founded in 1924 in Italy, CEAT Ltd became part of the RPG Group in 1982. It specializes in manufacturing tires for a diverse range of vehicles, from scooters to trucks, ensuring superior grip and durability.

With its headquarters in Mumbai, CEAT has established a strong presence in India. The company is committed to innovation and sustainability, continuously developing eco-friendly products to cater to the needs of modern drivers.

JK Tyre & Industries Ltd

The Market Cap of JK Tyre & Industries Ltd is Rs. 11,310.18 crores. The stock’s one-month return is 10.8%. Its one-year return is 18.03%. The stock is 35.49% away from its 52-week high.

JK Tyre & Industries Ltd is a pioneer in the radial tire segment in India. Established in 1974, the company offers a wide range of products for passenger cars, trucks, buses, and farm vehicles, catering to diverse needs.

With manufacturing facilities across India and Mexico, JK Tyre exports its products to over 100 countries. It has gained a reputation for innovation, quality, and commitment to customer satisfaction, making it a trusted brand worldwide.

Kesoram Industries Ltd

The Market Cap of Kesoram Industries Ltd is Rs. 7,030.01 crores. The stock’s one-month return is 9.96%. Its one-year return is 38.91%. The stock is 2.4% away from its 52-week high.

Founded in 1919, Kesoram Industries Ltd started as a rayon manufacturer before diversifying into cement and tire production. It operates under the Birla group, delivering quality products across various industries.

The company’s tire division, Birla Tyres, is a key player in the industry, focusing on innovation and reliability. With a rich legacy, Kesoram continues to adapt to changing market dynamics while maintaining high standards.

TVS Srichakra Ltd

The Market Cap of TVS Srichakra Ltd is Rs. 2,959.83 crores. The stock’s one-month return is 5.14%. Its one-year return is -18.01%. The stock is 28.49% away from its 52-week high.

TVS Srichakra Ltd is part of the TVS Group, established in 1982, and specializes in manufacturing two-wheeler and three-wheeler tires. The company serves domestic and global markets with durable and performance-driven products.

Headquartered in Madurai, Tamil Nadu, TVS Srichakra focuses on continuous innovation and sustainable practices. It has earned a strong reputation among OEMs and aftermarket customers worldwide.

Goodyear India Ltd

The Market Cap of Goodyear India Ltd is Rs. 2,401.45 crores. The stock’s one-month return is 0.1%. Its one-year return is -21.13%. The stock is 39.26% away from its 52-week high.

Goodyear India Ltd, a subsidiary of The Goodyear Tire & Rubber Company, has been operating in India since 1922. It is a trusted name in automotive and farm tires, delivering high-quality products.

The company combines global expertise with local insights to offer innovative solutions. With a focus on reliability and performance, Goodyear India serves a wide array of industries, including agriculture and automotive.

Tinna Rubber and Infrastructure Ltd

The Market Cap of Tinna Rubber and Infrastructure Ltd is Rs. 2,368.32 crores. The stock’s one-month return is 0.69%. Its one-year return is 137.62%. The stock is 57.46% away from its 52-week high.

Tinna Rubber and Infrastructure Ltd specializes in recycling end-of-life tires into eco-friendly products. Established in 1987, the company is a pioneer in sustainable practices within the tire and rubber industry.

With a commitment to environmental conservation, Tinna Rubber focuses on innovative recycling technologies. Its products cater to various sectors, including road construction, rubber manufacturing, and industrial applications.

GRP Ltd

The Market Cap of GRP Ltd is Rs. 1,679.12 crores. The stock’s one-month return is -0.6%. Its one-year return is 166.64%. The stock is 51.38% away from its 52-week high.

GRP Ltd, established in 1974, is a leading manufacturer of reclaimed rubber, focusing on sustainability and resource efficiency. The company serves global markets with its eco-friendly rubber solutions.

With its headquarters in Solapur, Maharashtra, GRP Ltd operates state-of-the-art facilities that align with international standards. The company’s dedication to innovation and environmental stewardship has made it a trusted name in the industry.

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.