The shares of the tyre manufacturer, TVS Srichakra Limited, opened at Rs 3,250 levels and gained as much as 10 per cent in the early hours to reach a new 52-week high of Rs 3,644. The stock rallied Automotive Tyre Manufacturers Association said that the tyre industry is set to boom in the coming years.
It said that they expect the tyre industry in India will be able to scale a turnover of Rs 1 lakh crore in the next three years. The industry has completed an investment of Rs 35,000 crore in the last three years in new capacity creation and debottlenecking.
TVS Srichakra Limited is one of the best two-wheeler tyres in India. These tyres are manufactured by TVS Eurogrip, one of the best manufacturers in India and exporters of two-wheeler tyres, three-wheeler tyres, ultra-light truck tyres, agricultural tyres, industrial tyres and OTR tyres.
The shares of the company have zoomed from Rs 1,602 levels in July 2022 up to the present levels logging a multibagger return of 120 per cent. An investment of Rs 1 lakh then would be worth Rs 2.20 lakhs in just six months.
The results of the company improved on a quarterly basis as their total revenue increased by 21 per cent Year on Year (YoY) to be at Rs 833.5 Crore compared to Rs 687.51 crore. Their net profit also jumped by 51 per cent in the quarter under review to be at Rs 38.19 Crores up from Rs 25.27 Crore in Q2FY22.
The small-cap tyre manufacturer has a market capitalization of Rs 2,710 Crore. The promoters of the company hold a 45.36 percent stake and haven’t pledged any shares.
Written by Anoushka Roy
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