Ceat, Mrf Among 4 Tire Stocks that Zoomed Up to 22% Following Q4 Numbers. Do you oven any?

Tire stocks in focus: Shares of CEAT, JK TYRE & Industries, and Mrf Have Surged Following The release of their March Quarter Results. Strong Financial Performance, Upbeat Management Commentary, And Continued Bully from Analysts Have Encoured Investors to Increase The Tyre Sector, Driving Stock PRICK PRICS SECTORS 20%.

Ceat’s share price has jumped from 3,060 to 3,728 over 16 trading sessions, resulting in a 22% gain following 4,000 mark for the first time, Hitting a fresh all-time of high 4,044 Apiece.

Likewise, JK Tire’s Share Price Rose Over 9% After its March Quarter Results, while Mrf Gained 7% Folling Its Q4 Figures. Apollo Tyres also Saw Its Share Price Increase By 5.5%.

Replacement Demand and Stable Input Costs Support Tire Makers in Q4FY24

Despite Tepid Demand for New Tys during the reporting Quarter, Strong Replacement Demand from Retail Customers Supported Healthy Volume Growth for Tyre Manufacturers. In Recent Quarters, Sluggish Passenger Vehicle Sales Have Prompted Tyre Makers to Increasingly relay on the replacement market to DRIVE OVERALL VOLUMES.

Also read , Ceat set to regain margin muscle, but rising debt may slow the ride

A key positive in the March Quarter was the Stability in Raw Material Prisies Compared to Q3. However, some of that benefits was partally offset by the depreciation of the rupee against the us dollar. Tyre companies also implemented price hikes during the year, which helped cushion the impact of elevated input costs.

Looking ahead to fY26, Tire Companies have shared a positive outlook. CEAT expects Continued Double-Digit Growth, Driven Primarily by Rising Demand in the Premium Tire Segment. The company recently launched three new Premium Tyres-Run Flat Tyres, Z-RECED 21-Inch Radials, and Calm Tyres designed for evs.

CEAT Currently holds a market share of 20–25% in the electric two-wheeler (E2W) and Electric Passenger Vehicle (E-PV) Segments and Aims to Maintain this Share Through Through Throurth Wins. Jk tyre also noted that its Premiumization strategy is yielding positive results.

Also read , Maruti to Mrf: 6 Auto Stocks are Neering Record Highs. Do you hold any?

Its Premium Products – Including Leuitas Ultra, Ranger Series, and Puncture Guard Tyres in the Passenger Vehicle Segment, Along with the XF, XM, and XD Series in the Commercial Segment Company said are witnessing strong market traction.

Analysts Remain Bully Stocks

Analysts remain optimistic about the type of sector’s outlook, Citing Improving Margin Potential Driven by a Sharp Decline in Crude Oil-Based Raw Material Costs and Easing Domestic Rubber. Crude oil prices have fallen Nearly 18% so far this year, which is expected to benefit oil-sensitive sector likes like tyrs.

Also read , RIL, IOC to Asian Paints: which stocks to buy as crude oil pristh 20% ytd?

Following the Strong March Quarter Performance, Several Domestic and Global Brokeage Firms Have REAFFIFIRMED their positive stance on Leading Tire Companies. Japanese Brokerage Firm Nomura Upgraded Ceat Stock to ‘Buy’ From Neutral, Raising Its Target Price to 3,945 from 3,051.

Emkay Global also maintained a ‘Buy’ Rating and Increased Ceat’s Share Price Target to 4,100, while Motilal Oswal Reiterated Its ‘Buy’ Rating With a Target of 3,818, Noting CEAT’s Strategic Focus on Segments Like Passenger Vehicles, Two-WHEELERS, Off-Highway Tyres, and Exports, Along with Disciplined Cape, Is Likely to Support Lykeli to SubPpport Long Margin and Free Cash Flow Improvement.

Global Brokerage Clsa Raised Its Price Target on Mrf, One of India’s Most Expensive Stock, to 168,426 from 128,599, mainTaining its ‘outperform’ rating. Clsa’s new target is the highest on the street, surpassing anand rathi’s ear’s earlier peak of 160,000.

Clsa Added that MRF’s Superir Product Portfolio has enabled it to outperform peers and could help it generate free cash flow of 2,700 Crore by FY27. In the case of Apollo Tys, Motilal Oswal mainted its ‘Buy’ Rating With a Target Price of 554.

ICICI Securities also reiterated its ‘Buy’ call, Raising The Price Target to 555 from 520. Nomura, meanwhile, adjusted Apollo Tyres’ Target Price to 490 from 470 but retained a ‘neutral’ rating.

Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.

Source link