CEAT, MRF among 4 tyre stocks that zoomed up to 22% following Q4 numbers. Do you own any?
Tyre stocks in focus: Shares of CEAT, JK Tyre & Industries, and MRF have surged following the release of their March quarter results. Strong financial performance, upbeat management commentary, and continued bullish sentiment from analysts have encouraged investors to increase their exposure to the tyre sector, driving stock prices up by over 20%.
Ceat's share price has jumped from ₹ 3,060 to ₹ 3,728 over 16 trading sessions, resulting in a 22% gain following the release of its March quarter results on April 30. The strong performance also pushed the stock past the ₹ 4,000 mark for the first time, hitting a fresh all-time high of ₹ 4,044 apiece.
Likewise, JK Tyre's share price rose over 9% after its March quarter results, while MRF gained 7% following its Q4 figures. Apollo Tyres also saw its share price increase by 5.5%.
Despite tepid demand for new tyres during the reporting quarter, strong replacement demand from retail customers supported healthy volume growth for tyre manufacturers. In recent quarters, sluggish passenger vehicle sales have prompted tyre makers to increasingly rely on the replacement market to drive overall volumes.
A key positive in the March quarter was the stability in raw material prices compared to Q3. However, some of that benefit was partially offset by the depreciation of the rupee against the US dollar. Tyre companies also implemented price hikes during the year, which helped cushion the impact of elevated input costs.
Looking ahead to FY26, tyre companies have shared a positive outlook. CEAT expects continued double-digit growth, driven primarily by rising demand in the premium tyre segment. The company recently launched three new premium tyres — Run Flat Tyres, Z-rated 21-inch radials, and CALM tyres designed for EVs.
CEAT currently holds a market share of 20–25% in the electric two-wheeler (E2W) and electric passenger vehicle (E-PV) segments and aims to maintain this share through new order wins. JK Tyre also noted that its premiumization strategy is yielding positive results.
Its premium products — including Leuitas Ultra, Smart Tyre, Ranger Series, and Puncture Guard tyres in the passenger vehicle segment, along with the XF, XM, and XD series in the commercial segment —the company said are witnessing strong market traction.
Analysts remain optimistic about the tyre sector's outlook, citing improving margin potential driven by a sharp decline in crude oil-based raw material costs and easing domestic rubber prices. Crude oil prices have fallen nearly 18% so far this year, which is expected to benefit oil-sensitive sectors like tyres.
Following the strong March quarter performance, several domestic and global brokerage firms have reaffirmed their positive stance on leading tyre companies. Japanese brokerage firm Nomura upgraded CEAT stock to 'buy' from Neutral, raising its target price to ₹ 3,945 from ₹ 3,051.
Emkay Global also maintained a 'buy' rating and increased CEAT's share price target to ₹ 4,100, while Motilal Oswal reiterated its 'buy' rating with a target of ₹ 3,818, noting CEAT's strategic focus on segments like passenger vehicles, two-wheelers, off-highway tyres, and exports, along with disciplined capex, is likely to support long-term margin and free cash flow improvement.
Global brokerage CLSA raised its price target on MRF, one of India's most expensive stock, to ₹ 168,426 from ₹ 128,599, maintaining its 'outperform' rating. CLSA's new target is the highest on the Street, surpassing Anand Rathi's earlier peak of ₹ 160,000.
CLSA added that MRF's superior product portfolio has enabled it to outperform peers and could help it generate free cash flow of ₹ 2,700 crore by FY27. In the case of Apollo Tyres, Motilal Oswal maintained its 'buy' rating with a target price of ₹ 554.
ICICI Securities also reiterated its 'buy' call, raising the price target to ₹ 555 from ₹ 520. Nomura, meanwhile, adjusted Apollo Tyres' target price to ₹ 490 from ₹ 470 but retained a 'neutral' rating.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
7 hours ago
- Economic Times
Apollo Hospitals shares in focus after Q4 profit jumps 53% YoY to Rs 390 crore
Apollo Hospitals Enterprise shares will be in focus on Monday after the company reported a 53.5% year-on-year (YoY) jump in net profit for the March quarter. Net profit rose to Rs 390 crore in Q4FY25 from Rs 254 crore in the same quarter last year, beating Street estimates of Rs 374 crore. ADVERTISEMENT Revenue from operations grew 13% YoY to Rs 5,592 crore, compared to Rs 4,944 crore in Q4FY24. On a sequential basis, profit after tax (PAT) rose 5% from Rs 372 crore in Q3FY25. Revenue was marginally higher by 1.2% compared to Rs 5,527 crore in the previous quarter. Total expenses during the quarter stood at Rs 5,148 crore, up from Rs 5,060 crore in Q3FY25 and Rs 4,612 crore in Q4FY24. Key expenditure heads included cost of materials consumed, changes in inventories, employee benefits, and finance company's board has recommended a final dividend of Rs 10 per equity share for FY25. The record date for determining eligible shareholders has been set for August 19, 2025. Also Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list ADVERTISEMENT The company's revenue comes from healthcare services, retail health & diagnostics and digital health & pharmacy distribution.- Healthcare services: Q4FY25 revenue stood at Rs 2,843 crore versus Rs 2,803 crore in Q3FY25 and Rs 2,579 crore in Q4FY24. ADVERTISEMENT - Retail Health & Diagnostics: Q4FY25 revenue stood at Rs 394 crore versus Rs 390 crore in Q3FY25 and Rs 354 crore in Q4FY24.- Digital health & pharmacy distribution: Q4FY25 revenue stood at Rs 2,376 versus Rs 2,352 crore in Q3FY25 and Rs 2,027 crore in Q4FY24. ADVERTISEMENT The company also announced significant expansion in Bengaluru in the Sarjapur micro-market through the addition of 700 beds in 2 stages, to establish a dominant presence in the South-Eastern part of the city with a large addressable market. Also Read: Ola Electric, Kalyan Jewellers among 10 firms where promoters pledge increased in Q4 ADVERTISEMENT According to Trendlyne, the average target price for Apollo Hospitals stands at Rs 7,779, indicating a potential upside of nearly 13% from current levels. Among the 29 analysts tracking the stock, the consensus rating is 'Buy'.Apollo Hospitals shares are down 7% year-to-date but have gained 14% over the past three months. The company's market capitalisation currently stands at Rs 98,897 crore. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
The Hindu
14 hours ago
- The Hindu
Lord Jagannath becomes MRF's second client for Sukhoi tyres after IAF
On the night May 31, the chariot of Lord Jagannath rolled on the streets of Kolkata with tyres of Sukhoi fighter jets. The 24 km dry run was to ascertain whether the four tyres that are fixed to usually Sukhoi fighter jets were fitted properly to the wooden chariot of the Lord Jagannath. ISKCON (International Society for Krishna Consciousness) Kolkata, which has been organising annual Rath Yatra for the past five decades have been looking to replace the Boeing tyres fitted to the chariot of Lord Jagnnath for the past few years. Radharaman Das, the Vice President of ISKCON Kolkata said that when he approached the tyre maker MRF they were shocked at the request of Sukhoi aircraft tyres for chariot of Lord Jagannath. 'For the last 48 years the chariot of Lord Jagnnath has been working on Boeing tyres, for the last 20 years we have been looking for a replacement. MRF finally called us in December 2024, they were also shocked because they only have only one client the Indian Air Force,' Mr. Das told The Hindu. The ageing tyres of Boeing -747 had been serving the chariot for over 50 years but last year the organisers of the Rath Yatra faced significant challenges including axel issues. 'In 1972 we started the first Kolkata Rath Yatra. In 1977 an American disciple got this new chariot made for Lord Jagannath. He used Boeing second hand tyres from Kolkata Airport to make the chariot,' he said. The Boeing tyres were manufactured by Kolkata based tyres makers Dunlop, But since Dunlop suspended its operation a long time ago, finding aircraft tyres was a challenge to ISKCON. The Sukhoi's 4-ft diameter tyres were found to be the closest to the jumbo jet tyres which were of the same diameter. Mr. Das said that MRF sent a team comprising a general manager to verify their claims and needs for new Sukhoi tyres. 'MRF sent a team of their general manager and others to see that we have the Boeing jumbo jet tyres in our chariot. Then they sent a report and MRF finally agreed to sell four tyres,' the ISKCON representative said. The four tyres, each of which can withstand a load of 16 tonnes have come at a cost of Rs 1.72 lakh The installation of Sukhoi tyres took about 20 to 25 days, which required minor structural changes keeping the traditional wooden and iron structures intact and a dry run was held on Saturday night. Mr. Das said that the chariots of other deities including Lord Balaram chariot has got new iron wheels for the chariot. On July 27, 2025 when thousands of devotees will participate in the annual Rath Yatra of ISKCON in Kolkata, and pull the ropes of chariot of Lord Jagannath, it will gently roll the tyres of Sukhoi jets which are meant to pierce the skies at supersonic speed.
Mint
19 hours ago
- Mint
Lord Jagannath's chariot to roll on Sukhoi jet tires on Kolkata streets: Report
This year, Lord Jagannath's chariot will roll on Sukhoi fighter jet tires on the streets of Kolkata, reported NDTV. The Rath Yatra, to be held on June 27, will be organised by ISCKON Kolkata. The organizer arrived at a decision to run the massive chariot on Sukhoi tires after a search for around 20 years. 'The old tires, sourced from a Boeing 747 jumbo jet, have been replaced by tires used on Sukhoi fighter planes and manufactured by MRF,' said the NDTV report. But it was a challenge for the organizer to arrange the tires as they had to assess the charriot's weight they could bear. "Finding a weighing scale for a massive chariot was a huge task. We eventually managed to weigh it and it came to about nine tonnes. Factoring in the weight of devotees on the chariot during the Yatra, we realised that the tires would need to support a weight of about 16 tonnes," Radharamn Das, vice president and spokesperson for ISCKON Kolkata, told NDTV. "We first spoke to Dunlop, but they had stopped manufacturing these tires. After extensive research, we found Sukhoi tires to be the best match. We first tried to contact MRF in 2018, but could not get through. Eventually, they got back six years later. In December 2024, they sent a team, we worked out a price and they delivered the tires a month back," Das added. He further said that MRF officials were surprised when ISKCON told them about the requirement. "We were told that the only other client for these tires is the Indian Air Force." The four tires supplied by MRF came at a cost of ₹ 1.80 lakh. After the tires were fitted to the chariot, a 24-km long dry run was performed for a trial. The Rath Yatra in Kolkata was started in 1972 with a small chariot.
