Investment in the Stock market is carefully watched with all those sectors that can boost the economy. One such sector, that can boost the economy, is the tyres industry which is very crucial to the Indian automotive and transport landscape. With vehicle sales poised to rise, infrastructures coming on stream, and demand for replacement tyres witnessing a hike, the tyre industry in India is slated to take a boom in 2024. Let’s navigate through the prime tyre stocks of India by market cap: MRF Ltd, Balkrishna Industries Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, and CEAT Ltd.
This article will guide investors in making informed decisions by offering information on the recent performance, strength, and market position of each company.
The Indian Tyre Market in 2024
The Indian tyre industry has experienced significant growth due to the expanding automobile sector, government initiatives like “Make in India,” and an increase in exports. The government’s initiative known as the “Make in India” scheme, and an increase in exports also contributed to it. The manufacturers of tyres sell products for domestic as well as international markets. This industry includes products for different kinds of vehicles, such as passenger cars, commercial trucks, two-wheelers, and off-road vehicles.
Investors are keen on market leaders, whose stock promises stability and long-term returns in the year 2024. Let’s take a look at the top tyre companies that dominate market capitalization.
1. MRF Limited: The Industry Giant
MRF Ltd, or Madras Rubber Factory, is India’s largest tyre company by market capitalization. Known for its high-quality products and innovation, MRF is a name recognized throughout the world.
Key Highlights
- Market Capitalisation: Approximately ₹40,000 crores (as of 2024).
- Product Range: Passenger car tyres, truck and bus radial tyres, two-wheeler tyres, and off-road tyres.
- Global Presence: Strong export market in the Middle East, Africa, and Asia.
- Revenue Growth: Consistently growing due to demand for high-performance tyres.
Strengths
- Diversified product portfolio catering to all vehicle segments.
- Investment in R&D for advanced tyre technologies.
- Brand loyalty driven by exceptional durability and performance.
The shares of MRF are a blue-chip investment since it is not susceptible to market fluctuations and also offers steady dividend returns.
2. Balkrishna Industries: The Specialist in Off-Highway Tyres
Balkrishna Industries is an off-highway tyre (OHT) manufacturer, with primary focus areas on the agricultural, industrial, and construction vehicles markets. At the moment, it is at the forefront globally in the OHT space.
Key Highlights
- Market Capitalisation: Approximately ₹25,000 crores.
- Export Focus: Over 60% of revenue from exports, especially in Europe and North America.
- Product Expertise: Known for innovative solutions in specialty tyre segments.
Strengths
- Focused niche in high-margin off-highway tyres.
- Strong brand presence in international markets.
- Advanced manufacturing capabilities and cost efficiency.
Balkrishna Industries is one of those stocks that investors would love to hold because of their exportoriented, highprofit business areas.
3. Apollo Tyres: A Global Player
Apollo Tyres is an international tyre company with a high presence in India, Europe, and North America. The large brand portfolio and the extensive global operations place it at the forefront among all the companies in business.
Key Highlights
- Market Capitalisation: Around ₹20,000 crores.
- Global Reach: Extensive operations in Europe and the US through the Vredestein brand.
- Product Diversity: Covers passenger vehicles, commercial vehicles, and two-wheelers.
Strengths
- Investments in European markets enhance global competitiveness.
- Strong R&D capabilities with facilities in India and Europe.
- Focus on sustainability and green tyre manufacturing.
Apollo Tyres is a good investment opportunity for investors looking for an equity mix of both domestic and international markets.
4. JK Tyre & Industries: The Innovator
JK Tyre & Industries is one of the leading tyre companies in the country that has the distinction of launching the radial tire in India. Strong presence in commercial as well as passenger vehicle space.
Key Highlights
- Market Capitalisation: Around ₹8,000 crores.
- Innovation Leader: Pioneer in truck and bus radial tyres in India.
- Market Presence: Extensive dealership and distribution network.
Strengths
- Focus on cost-efficient manufacturing.
- Strategic investments in technology and capacity expansion.
- Growing export revenue.
JK Tyre’s stocks are attractive for mid-cap investors focusing on companies with potential for technological advancement and market expansion.
5. CEAT: The Trusted Brand
CEAT, part of the RPG Group, is a household name in India’s tyre market. Known for its reliability and affordability, CEAT caters to a broad customer base.
Key Highlights
- Market Capitalisation: Approximately ₹6,000 crores.
- Focus Areas: Passenger cars, motorcycles, and commercial vehicle tyres.
- Brand Strength: Popular for its value-for-money proposition.
Strengths
- Strategic partnerships with OEMs (Original Equipment Manufacturers).
- Strong retail and distribution network across India.
- Commitment to sustainable practices and green tyre initiatives.
CEAT is a promising stock for investors seeking exposure to the mass-market tyre segment with consistent demand.
Conclusion
Indian tire industry changes as it grinds with increasing vehicle ownership, infra growth, and export demand growth. Of the three mentioned, MRF Limited, Balkrishna Industries, Apollo Tyres, JK Tyre & Industries, and CEAT make for an ideal pack for 2024.
Whether you are looking for blue-chip stability or mid-cap growth potential, these companies represent the best in India’s tyre market.
FAQs
Which is the biggest tyre manufacturer in India?
MRF Limited is the biggest tyre manufacturer by market capitalisation and product range.
What makes Balkrishna Industries special?
Specialization in off-highway tyres and an export-driven business model make it stand out in the industry.
Is Apollo Tyres a good investment?
Yes, Apollo Tyres is ideal for any investor looking for play from domestic to international markets.
Why Invest in JK Tyre & Industries?
JK Tyre’s focus on the pursuit of innovation and cost-effective production makes it a clear winner in the tyre space.
What sets CEAT apart?
CEAT is known for low-cost, reliable tyres and robust distribution. It will, therefore, appeal to mass-market consumers as a sound brand for safety.
