The Indian tyre industry is poised for significant growth in the upcoming years, with projections indicating a substantial increase in revenue.
According to the Automotive Tyre Manufacturers’ Association (ATMA), the industry is set to more than double its revenue to $22 billion by FY31-32 from $9 billion in FY21-22. In the truck and bus tyre segment, radialization has already reached nearly 60 percent and continues to grow steadily.
Highlighted below are a few tyre stocks identified for their strong Piotroski score, up to 9:
Balkrishna Industries Limited
With a market capitalisation of Rs. 60,224 crores and a Piotroski score of 7, the shares of India’s Leading player in the Global Off-Highway Tire (OHT) market surged 0.84 percent on BSE to hit an intraday high at Rs. 3,180 on Tuesday, as against its previous closing price of Rs. 3,153.35.
Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 15.7 percent from Rs. 2,317 crore in Q4 FY22-23 to Rs. 2,682 crore in Q4 FY23-24.
Similarly, its net profit increased during the same period from Rs. 260 crore to Rs. 486.7 crore, indicating a growth of 87.2 percent YoY.
Over the past one year, the stock has delivered positive returns of nearly 28.7 percent, as well as about 21 percent returns year-to-date.
Balkrishna Industries Limited is engaged in the business of manufacturing and selling Off-Highway Tyres (OHT) in the specialist segments such as agricultural, industrial & construction, earthmovers & port, mining, forestry, lawn & garden and All Terrain Vehicles (ATV).
CEAT Limited
With a market capitalisation of Rs. 11,026 crores and a Piotroski score of 8, the shares of one of India’s leading tyre manufacturers surged 0.7 percent on BSE to hit an intraday high at Rs. 2,744.8 on Tuesday, as against its previous closing price of Rs. 2,725.1.
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Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 4.06 percent from Rs. 2,874.8 crore in Q4 FY22-23 to Rs. 2,991.8 crore in Q4 FY23-24.
However, its net profit declined during the same period from Rs. 124.7 crore to Rs. 92.8 crore, indicating a fall of 25.6 percent YoY.
Over the past one year, the stock has delivered positive returns of nearly 11.2 percent, as well as about 12.2 percent returns year-to-date.
Established in 1958, CEAT Limited, the flagship company of RPG Enterprises, is primarily engaged in the business of manufacturing of automotive tyres, tubes and flaps. The company produces tyres to serve various segments like 2-3 wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles.
Indag Rubber Limited
With a market capitalisation of Rs. 630.5 crores and a Piotroski score of 8, the shares of one of India’s leading tread manufacturing company surged 3.3 percent on BSE to hit an intraday high at Rs. 259.8 on Tuesday, as against its previous closing price of Rs. 251.55.
Financially, the company experienced a significant fall in its total revenue, showing a year-on-year decline of around 4 percent from Rs. 66.6 crore in Q4 FY22-23 to Rs. 63.8 crore in Q4 FY23-24.
Similarly, its net profit decreased during the same period from Rs. 6.6 crore to Rs. 3.4 crore, indicating a fall of 48.5 percent YoY.
Over the past one year, the stock has delivered positive returns of nearly 85.5 percent, as well as about 72.3 percent returns year-to-date.
Indag Rubber Limited is engaged in the manufacturing and selling of precured tread rubber, bonding repair and extrusion gum & rubber cement, which are used for retreading of tyres and providing tyre retreading service.
Apollo Tyres Limited
With a market capitalisation of Rs. 34,946.4 crores and a Piotroski score of 9, the shares of India’s leading tyre manufacturing company surged 2.5 percent on BSE to hit an intraday high at Rs. 553.5 on Tuesday, as against its previous closing price of Rs. 539.75.
Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 0.2 percent from Rs. 6,247.3 crore in Q4 FY22-23 to Rs. 6,258.2 crore in Q4 FY23-24.
However, its net profit decreased during the same period from Rs. 427.4 crore to Rs. 354 crore, indicating a decline of 17.2 percent YoY.
Over the past one year, the stock has delivered positive returns of nearly 32.3 percent, as well as about 21.6 percent returns year-to-date.
Started operation in 1972, Apollo Tyres Limited is engaged in the manufacturing and sale of automobile tyres and tubes.
Written by Shivani Singh
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