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Tyres Stocks

India's robust tyre sector, valued at over $9 billion, boasts over 40 companies and 60 manufacturing plants, employing millions directly and indirectly. With a diverse product range and adaptability to consumer needs, it's a vital part of the economy. Projected to grow steadily at a CAGR of 5.54%, reaching 256.24 million units by 2029, factors like radial tyre demand, vehicle growth, and eco-friendly options drive this growth. Before investing, consider market trends, competition, global presence, technology, raw material costs, regulations, financials, and sustainability. Angel One facilitates stock investment, with MRF Ltd topping the market cap. Balkrishna Industries Ltd is a top choice with a 5-year CAGR of 24.47%. Read More
Company
LTP
Volume
Market Cap
52W Low
52W High

LTP

₹ 475.35

-1.35 (-0.28%)

Volume

8,44,024

Market Cap

₹30,278 Cr

52W Low

₹365.00

52W High

₹557.90

LTP

₹ 3,211.5

21.45 (0.67%)

Volume

44,774

Market Cap

₹61,706 Cr

52W Low

₹2,193.80

52W High

₹3,283.50

LTP

₹ 5.3

0.00 (0.00%)

Volume

1,33,882

Market Cap

₹77 Cr

52W Low

₹4.25

52W High

₹5.80

LTP

₹ 2,535.75

-3.60 (-0.14%)

Volume

27,439

Market Cap

₹10,271 Cr

52W Low

₹1,992.40

52W High

₹2,998.45

LTP

₹ 209.7

4.60 (2.24%)

Volume

1,030

Market Cap

₹206 Cr

52W Low

₹106.00

52W High

₹242.00

LTP

₹ 10.41

-0.23 (-2.16%)

Volume

1,30,254

Market Cap

₹127 Cr

52W Low

₹0.00

52W High

₹11.17

LTP

₹ 13.95

-0.70 (-4.78%)

Volume

899

Market Cap

₹17 Cr

52W Low

₹0.00

52W High

₹13.95

LTP

₹ 1,273.7

0.00 (0.00%)

Volume

24,143

Market Cap

₹2,713 Cr

52W Low

₹1,177.10

52W High

₹1,451.00

LTP

₹ 2.78

0.13 (4.91%)

Volume

5,552

Market Cap

₹6 Cr

52W Low

₹0.00

52W High

₹2.78

LTP

₹ 6.5

0.05 (0.78%)

Volume

30,000

Market Cap

₹12 Cr

52W Low

₹2.10

52W High

₹10.25

LTP

₹ 401.35

-0.15 (-0.04%)

Volume

4,43,622

Market Cap

₹10,469 Cr

52W Low

₹188.00

52W High

₹553.95

LTP

₹ 45.65

-0.93 (-2.00%)

Volume

4,375

Market Cap

₹68 Cr

52W Low

₹19.00

52W High

₹51.69

LTP

₹ 1,26,118.1

38.50 (0.03%)

Volume

2,294

Market Cap

₹53,427 Cr

52W Low

₹98,280.10

52W High

₹151,445.00

LTP

₹ 4,420.55

18.35 (0.42%)

Volume

1,960

Market Cap

₹3,359 Cr

52W Low

₹2,755.00

52W High

₹5,097.00

LTP

₹ 56.5

2.00 (3.67%)

Volume

8,000

Market Cap

₹67 Cr

52W Low

₹37.20

52W High

₹72.90

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About The Tyre Sector

The Indian tyre industry boasts a substantial valuation exceeding USD 9 billion, comprising a diverse landscape with over 40 tyre companies and 60 manufacturing plants. Renowned for producing the widest array of tyres globally, this sector plays a pivotal role in the nation’s economic fabric. Directly employing 2 million individuals, it also indirectly supports an additional 1 million jobs through a network of dealers, retreaters, and related activities.

India’s tyre industry is globally competitive, exporting tyres worldwide. Rural areas see a surge in demand due to limited public transport, pushing people towards vehicle ownership.

Tyres, circular parts filled with compressed air and fitted on rims, play crucial roles in supporting vehicle load, providing traction, absorbing impact, and enhancing comfort. The market offers a variety of tyre types (radial, bias), sizes (small to large), and price segments (low, medium, high), showcasing its adaptability to diverse consumer needs. The industry’s vitality lies in its ability to cater to the evolving demands of domestic and international markets.

Summary

India’s robust tyre sector, valued at over USD 9 billion, boasts over 40 companies and 60 manufacturing plants, employing millions directly and indirectly. With a diverse product range and adaptability to consumer needs, it’s a vital part of the economy. Projected to grow steadily at a CAGR of 5.54%, reaching 256.24 million units by 2029, factors like radial tyre demand, vehicle growth, and eco-friendly options drive this growth. Before investing, consider market trends, competition, global presence, technology, raw material costs, regulations, financials, and sustainability. Angel One facilitates stock investment, with MRF Ltd topping market cap. Balkrishna Industries Ltd emerges as a top choice with a 5-year CAGR of 24.47%.

Future Outlook of the Tyre Sector

Between 2023 and 2029, the Indian tyre market is projected to grow steadily at a CAGR of 5.54%, reaching 256.24 million units by 2029. The surge is fueled by an increasing demand for radial tyres, driven by superior performance and fuel efficiency. The growing number of vehicles on Indian roads and government initiatives promoting road safety are key factors.

Additionally, there’s a rising preference for tubeless tyres and a noticeable shift towards eco-friendly options. Online tyre sales are also on the rise, thanks to e-commerce platforms, reflecting changing consumer preferences in the Indian tyre market.

Things To Consider Before Investing in the Tyre Sector

Before investing in the tyre sector, it’s essential to consider several factors to make informed decisions:

  • Market Trends and Demand: Analyze current market trends and the demand for tyres. Keep an eye on the growth rate of the automobile industry, as it directly influences tyre demand.
  • Competitive Landscape: Understand the competitive landscape by researching major players, their market share, and their strategies. Assess how the company you’re considering investing in stands out in this competitive market.
  • Global Presence and Export Activities: Evaluate the company’s global presence and its involvement in export activities. A robust international presence can indicate a more resilient and diversified business.
  • Technological Advancements: Stay updated on technological advancements in the tyre industry. Companies investing in research and development for innovative tyre technologies may have a competitive edge.
  • Raw Material Costs: Tyre production heavily depends on raw materials like rubber. Monitor the fluctuations in raw material costs and the company’s ability to manage and mitigate such cost variations.
  • Regulatory Environment: Understand the regulatory environment governing the tyre industry. Changes in regulations can impact production processes, costs, and overall business operations.
  • Financial Performance: Scrutinise the financial health of the company. Evaluate its revenue growth, profitability, and debt levels. A financially stable company is better equipped to weather economic downturns.
  • Environmental and Sustainability Initiatives: With increasing emphasis on sustainability, assess the company’s environmental initiatives and adherence to eco-friendly practices. This can enhance the company’s reputation and appeal to environmentally conscious consumers.

How To Invest in the Tyre Sector Stocks?

To invest in sector stocks via Angel One, follow these steps:

  • Log in to your Angel One account.
  • Click on the search icon and look for your desired Tyre sector stock.
  • Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
  • To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’

FAQs

What are tyre sector stocks?

Tyre sector stocks represent shares in companies engaged in the manufacturing and distribution of tires for vehicles, offering investors opportunities to participate in the performance and growth of the tyre industry.

Which is the top stock from the tyre sector in terms of market cap?

As of February 2, 2024, MRF Ltd is the top stock from the tyre sector with a market capitalisation of ₹60,469.11 crore.

How do you evaluate tyre sector stocks?

One of the few key performance indicators for evaluating tyre sector stocks is revenue growth and metrics like profit margins, market share, and inventory turnover ratio.

Why should you invest in tyre sector stocks?

Investing in tyre sector stocks can be attractive due to the industry’s resilience, driven by steady demand from the growing automobile market, global competitiveness, and essential role in transportation.

Which are the best tyre sector stocks to invest in?

Balkrishna Industries Ltd is one of the best tyre sector stocks on the basis of 5Y CAGR from the NIFTY 500 universe. As of February 2, 2024, the company recorded a CAGR of 24.47% in the past 5 years.

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