20 companies · NSE & BSE · Updated daily
The Indian Tyres & Rubber Products sector is experiencing a robust upturn, driven by strong demand from the automotive sector and infrastructure development. This positive sentiment is reflected in rising volumes and improving realisations, a key metric for assessing pricing power and demand elasticity in this cyclical industry.
Automotive original equipment manufacturer (OEM) demand remains a primary driver, with passenger vehicle and commercial vehicle segments showing consistent growth. Replacement market sales are also robust, supported by increasing vehicle parc and favourable monsoon impacting agricultural demand for tractor tyres. Companies are focusing on premiumisation and expanding their product portfolios, particularly in radial tyres, to enhance margins. Capacity expansions are underway across several key players, signaling confidence in sustained demand.
What to Watch
Monitor raw material price volatility, especially natural rubber and crude oil derivatives. Track inventory levels across the value chain and the impact of potential regulatory changes or import duties. Keep an eye on competitive intensity and the ability of companies to pass on cost increases through price hikes, crucial for maintaining profitability in this capital-intensive sector.
What are the key growth drivers for the Indian tyre sector?
Key drivers include robust demand from the automotive OEM segment (PVs, CVs), strong replacement market sales, infrastructure development, and increasing vehicle parc. Premiumisation towards radial tyres also contributes significantly.
How does raw material price fluctuation affect tyre companies?
Tyre companies are heavily exposed to price volatility of natural rubber and crude oil derivatives. Significant price increases can compress margins if not effectively passed on to customers through price hikes.
What is the significance of 'volume-realisation' in this sector?
Volume-realisation is critical as it reflects both the quantity of tyres sold and the average selling price. It indicates pricing power, demand strength, and the success of premiumisation strategies.
Are tyre companies investing in capacity expansion?
Yes, many leading tyre manufacturers are undertaking capacity expansions to meet anticipated demand growth and strengthen their market position, particularly in the high-margin radial tyre segment.
| # | Company | Symbol | Price | Change | Market Cap |
|---|---|---|---|---|---|
| 1 | MRF Ltd | MRF | ₹129245.00 | +0.60% | ₹64.6K Cr |
| 2 | Balkrishna Industries Limited | BALKRISIND | ₹2256.00 | +1.14% | ₹44.5K Cr |
| 3 | Apollo Tyres Ltd | APOLLOTYRE | ₹429.60 | +3.16% | ₹32.8K Cr |
| 4 | CEAT Ltd | CEATLTD | ₹3487.00 | +1.82% | ₹15.5K Cr |
| 5 | Jk Tyre & Industries Ltd | JKTYRE | ₹394.15 | +1.81% | ₹12.3K Cr |
| 6 | TVS Srichakra Ltd | TVSSRICHAK | ₹4008.70 | -0.19% | ₹3.6K Cr |
| 7 | Goodyear India Ltd | GOODYEAR | ₹752.70 | +0.84% | ₹2.0K Cr |
| 8 | Tolins Tyres Ltd | TOLINS | ₹106.95 | -0.01% | ₹0.6K Cr |
| 9 | Indag Rubber Ltd | INDAG | ₹85.26 | -1.50% | ₹0.3K Cr |
| 10 | Modi Rubber Limited | MODIRUBBER | ₹128.39 | +1.39% | ₹0.3K Cr |
| 11 | Emerald Tyre Manufacturers Ltd | ETML | ₹82.85 | +3.56% | ₹0.2K Cr |
| 12 | Dolfin Rubbers Ltd | DOLFIN | ₹172.80 | +1.62% | ₹0.2K Cr |
| 13 | Innovative Tyres | ITTL | ₹122.00 | +0.00% | ₹0.1K Cr |
| 14 | Viaz Tyres Limited | VIAZ | ₹61.50 | -0.97% | ₹0.1K Cr |
| 15 | Vr Woodart Ltd | VRWODAR | ₹150.00 | +4.17% | ₹0.1K Cr |
| 16 | Tirupati Tyres Ltd | TTIL | ₹7.11 | +0.00% | ₹0.1K Cr |
| 17 | M M Rubber Company Limited | MMRUBBR-B | ₹65.88 | -1.08% | ₹0.1K Cr |
| 18 | Cochin Malabar Estates & Industries Ltd | COCHMAL | ₹149.85 | +0.00% | ₹0.0K Cr |
| 19 | Vamshi Rubber Ltd | VAMSHIRU | ₹40.99 | +0.94% | ₹0.0K Cr |
| 20 | Eastern Treads Ltd | EASTRED | ₹27.67 | -0.29% | ₹0.0K Cr |