Tyre stocks in demand: JK Tyre, Apollo rally up to 4%, MRF hits new high

Business Standard

17-07-2025

Tyre companies' share price today
Shares of tyre companies rallied up to 4 per cent on the BSE in Thursday's intraday trade, in an otherwise subdued market, on expectation of a healthy operational performance going forward.
JK Tyre & Industries, Apollo Tyres, and Balkrishna Industries rallied 4 per cent each in the intraday trade. Ceat and TVS Srichakra shares, meanwhile, gained 2 per cent, while MRF share price hit an all-time high of ₹153,000 in the intraday trade today. In comparison, the BSE Sensex was down 0.24 per cent at 82,434 at 11:11 AM.
In the past one month, these stocks have outperformed the market by gaining between 4 per cent and 13 per cent, as compared to a 1-per cent rise in the benchmark index.
Tyre sector outlook in India
International Natural Rubber (NR) prices have corrected in the last two months, and are currently trading at a discount to domestic NR prices. While crude prices have corrected to $65/barrel, crude derivate prices are yet to reflect this fall (expected to correct with a lag). Industry players expect the recent correction in the raw material basket to benefit favourably from the latter part of Q2FY26 (RM basket is expected to remain flattish during Q1FY26), said analysts at ICICI Securities in a company update.
"RM outlook is flattish in Q1 and Q2 vs earlier expectation of benefit from Q2. Margin gains could accrue from second half of Q2 provided commodity prices soften further," according to analysts at Emkay Global Financial Services.
In PCR (replacement) segment, Bridgestone leads with ~22 per cent share and premium pricing (index 100), followed by Apollo Tyres at ~17 per cent share (price ~85–86), and Ceat at 16 per cent share. In the consolidated TBR (truck, bus and radial tyres) market (MRF, Apollo, and JK are ~75 per cent of the market), Ceat holds ~10 per cent, the brokerage firm said.
Meanwhile, looking ahead, Balkrishna Industries expects to sustain its growth trajectory through continued recovery in Off-Highway demand and the progressive rollout of Premium Passenger Car Radial (PCR) and Commercial Vehicles Radial (CVR) tires.
"Financial projections indicate stable blended margins in the range of 23 per cent to 25 per cent, following full-scale commercialisation. With optimised capacity utilisation, a strong balance sheet and a net cash position," Balkrishna Industries in its FY25 annual report said that the company is well-equipped to scale in a responsible manner and strengthen its global market presence.
Commercial vehicles growth will continue to be muted in FY26 as in the previous year. As per Society of Indian Automobile Manufacturers (SIAM) estimates, passenger vehicles are expected to grow in low single digits. Also, unless entry level vehicle sales pick up, volume growth will be difficult in this segment. Two wheelers should continue to grow based on demand pick up in the rural economy. Considering the good monsoon, tractor sales should continue to grow as in the previous year. Impact on tyre Industry would also be similar as outlined above, MRF said in its FY25 annual report.
India's low reliance on external demand is expected to shield the country from trade and tariff uncertainties, on relative terms. A significant portion of MRF exports is in services which are not expected to be hit by tariffs. Concluding trade deals with various countries, supply chain realignments and moderation in commodity prices would be a positive for India's growth. India's service exports and foreign inward remittances will provide a cushion against trade volatilities, MRF said.