3 Tyre stocks near their 52 week high as raw material cost comes down

Indian tire companies saw no friction this week as tire stocks zoomed to their 52-week high on Friday. The buzz around tire stocks is around the recent relief from a reduction in raw material costs. 

Across the industry, the cost of raw materials for tire makers has come down, most of them being critical components in manufacturing. Here are the3 tire manufacturers which are trading at their all-year high. 

CEAT Ltd. 

In 5 days, the share price of CEAT Ltd rose 17.2% to a current market price and an all-year high of ₹1,625.20. In the past month alone, the stock has risen 19.2% and has given a year-to-date return of 34.34% to its shareholders. 

At its annual meeting, CEAT announced that they have increased its market share in high-end premium Passenger Car Radial tires. The company has planned a 900 crore capital expenditure for FY 2023. They are also planning to double exports to ₹3500 Crore from the present export revenue of ₹1800 crore in FY22. 

Revenues of the tire maker rose to Rs 2818 crores in the quarter ending June 2022, as compared to Rs 1906 crores in the same period a year earlier. Net profits for the company, however, fell to Rs 2 crores in June 2022 from Rs 16 crores in Q1FY22. 

CEAT, which was established in 1958, is one of the largest tyre manufacturers and is one of the fastest-growing tyre companies in India. 

JK Tyre & Industries Ltd 

The shares of JK Tyre opened at Rs 184 and rose by 7 per cent to reach its new 52-week high of Rs 197.45 in the early trading hours on Friday. In the past five days, the stock has given a 16.74% return and 38.20% in the past month. 

The company recently launched two new commercial vehicle tyres- Jetsteel JDH XM and Jetway JUC XM in Odisha. This comes as the company is determined to fulfil its commitment to bring the latest products to the market to meet the evolving demand of the customers. 

In Q1FY23, the total Revenues of the global tire company rose to Rs 3,643 crores up from RS 2,608 crores which they earned in the same quarter a year earlier. Their net profit stood at Rs 33 crores compared to Rs 43 crores in Q1FY22. 

JK Tyre & Industries, the flagship company of the JK group, is one of the leading tyre manufacturers in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments. 

Apollo Tyres Limited

At the opening bell, the shares of Apollo Tyres opened at ₹298.55 per share on Friday, near its 52-week high of ₹303.40. In the past 5 days, the stock has given a return of 3.57% and 14.31% in the past month. Year to date, the stock has given a return on investment of 29.45% to investors. 

The company has recently launched the Tramplr range of Enduro Off-road and Enduro street tyres for the premium Indian motorcycle market from 150cc motorcycles to 500cc motorcycles which cater to segments like sport touring, adventure touring and street sports. 

The revenues of Apollo Tyres stood at Rs 5,942 crores which is an increase from Rs 4,584 crores which they reported in the same quarter a year earlier. Their net profit stood at Rs 190 crores as compared to Rs 127 crores in Q1FY22. 

Apollo, which was established in 1972, manufactures automatic bias and radial tyres, and tubes. The product profile includes prominent tyre brands in the T&B, light truck, passenger car, and farm vehicle segments.

Written By – Anoushka Roy

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