Top Tyre Stocks in India

The Indian auto industry is a powerhouse, driven by a thriving tyre sector that keeps its wheels turning. For investors seeking to get in on the action, tyre stocks can provide a stable journey with solid growth opportunities. But with several major players, where do you begin?

No worries, in today’s blog we will deeply do a comparative analysis of the top 5 tyre stocks in India.

MRF

MRF is an Indian multinational tyre manufacturing company with its headquarters in Chennai, Tamil Nadu. Founded in 1946 by K.M Mammen Mappillai, it started as a toy balloon manufacturing unit and has grown into a tyre giant. The company manufactures a wide range of products including tyres for two-wheelers, cars, trucks, and even aeroplanes. They are also into the manufacturing of tyres, treads, tubes, conveyor belts, paints and toys.

MRF is the largest tyre manufacturer in India and ranks among the top 20 globally. They are well-recognised for their high-quality tyres and extensive reach across the country.

It was incorporated as a private company, Madras Rubber Factory Limited, and began tyre production in partnership with an American company, Mansfield Tire & Rubber Factory.

MRF has a wide distribution network in India, serving retail stores, dealerships, and car manufacturers. The company sells tyres directly to manufacturers (B2B) for factory use and also has a strong presence in the replacement tyre market for individual consumers (B2C).

They achieve this reach through an extensive network of franchised stores and dealers. The company focuses on offering excellent customer service through initiatives like roadside assistance programs and informative resources on its website.

MRF Consolidated Financial Statements

MRF Balance Sheet

Key Metrics	FY 2024	FY 2023
Total Assets	26,849	24,369
Total Liabilities	10,146	9,662
Total Equity	16,703	14,708

MRF Income Statement

Key Metrics	FY 2024	FY 2023
Total Revenues	25,486	23,261
Total Expenses	22,699	22,191
Net Profit	2,081	769

MRF Cash Flow Statement

Key Metrics	FY 2024	FY 2023
CFO	3,301	2,755
CFI	-2,379	-1,923
CFF	-868	-840

Balkrishna Industries

Balkrishna Industries Limited (BKT) is an Indian company that makes tyres for different types of vehicles and industries. They focus on off-highway tyres. The company was founded in the year 1987 and is headquartered in Mumbai. The company products include agriculture, industrial, and OTR tyres, as well as tubes and carbon black.

The company’s expertise lies in manufacturing Off-Highway Tyres (OHT) for agricultural, industrial & construction, earthmovers & port, mining, forestry, and All-Terrain Vehicles (ATV). They have five modern production facilities in India located in Aurangabad, Bhiwadi, Chopanki, Dombivali, and Bhuj.

Balkrishna Industries Consolidated Financial Statements

Balkrishna Industries Balance Sheet

Key Metrics	FY 2024	FY 2023
Total Assets	13,684	12347
Total Liabilities	4,830	4,790
Total Equity	8,853	7,556

Balkrishna Income Statement

Key Metrics	FY 2024	FY 2023
Total Sales	9,368	9,759
Total Expenses	7,764	8,623
Net Profit	1,471	1,057

Balkrishna Cash Flow Statement

Key Metrics	FY 2024	FY 2023
CFO	2,082	1,447
CFI	-1,475	-1,783
CFF	-601	358

Apollo Tyres

Apollo Tyres Limited is an Indian multinational tyre manufacturing company headquartered in Gurgaon, Haryana. The company was established in the year 1972 by Onkar Kanwar, and since then it has grown from a domestic Indian company to a global tyre manufacturer with a presence in over 100 countries. Apollo caters to a wide range of segments, including passenger vehicles, two-wheelers, trucks, buses, and light trucks.

In the 1990s, Apollo Tyres expanded globally with an ambitious strategy. The company established manufacturing facilities in 1997 in the Netherlands 2007, to better serve the European market.

The company employs a multifaceted business model, wherein it successfully integrates manufacturing, branding and a customer-centric approach. This strategic blend enables the company to effectively compete in the highly competitive global tyre market.

Apollo Tyres Financial Statements

Apollo Consolidated Balance Sheet

Key Metrics	FY 2024	FY 2023
Total Assets	26,957	27,359
Total Liabilities	13,054	14,481
Total Equity	13,901	12,877

Apollo Tyres Income Statement

Key Metrics	FY 2024	FY 2023
Total Sales	25,377	24,568
Total Expenses	22,485	22,651
Net Profit	1,721	1,104

Apollo Tyres Cash Flow Statement

Key Metrics	FY 2024	FY 2023
CFO	3,439	2,134
CFI	-710	-476
CFF	-2,659	-1,691

JK Tyres

JK Tyre is another leading Indian tyre manufacturer. The company was not always a separate entity. It began as part of the J.K. Organisation, a diversified Indian conglomerate founded in 1918 by Lala Kamlapat Singhania. It became the first company to manufacture radial tyres in India.

J.K. Industries Limited, the parent company of JK Tyres, was restructured and in 2007, JK Tyres & Industries were created to concentrate more on the tyre business. They cater to a wide range of vehicles, including cars, motorcycles and off-road vehicles.

Additionally, with operations in key regions such as ASEAN, the Middle East and Africa as part of the APMEA region, the Company continued to invest in brand building, working on the requirements of each region to bring country-specific products.  

JK Tyre has a strong distribution network in India that serves retail outlets, dealerships, and original equipment manufacturers (OEMs) of automobiles. This helps them keep a strong position in the local market.

The company’s manufacturing facility in Mexico serves the North American market and exports to over 100 countries worldwide. The global reach of the company enables them to access and explore untapped markets and exciting opportunities.

JK Tyre Consolidated Financial Statements

JK Tyre Balance Sheet

Key Metrics	FY 2024	FY 2023
Total Assets	14,094	12,448
Total Liabilities	9,606	9,051
Total Equity	4,488	3,395

JK Tyre Income Statement

Key Metrics	FY 2023	FY 2022
Total Income	15,001	14,644
Total Expenses	13,388	13,815
Net Profit	811	264

JK Tyre Cash Flow Statement

Key Metrics	FY 2024	FY 2023
CFO	1,614	1,224
CFI	-1,208	-400
CFF	-413	-747

CEAT

CEAT Limited, previously known as Cavi Electtrici e Affini Torino (Electrical Cables and Allied Products of Turin), is a leading and recognised multinational tyre manufacturing company headquartered in Mumbai, India. It was founded in 1924 in Turin, Italy, and then moved to India in 1958. The company is a flagship entity of the RPG Group, a prominent Indian conglomerate.

CEAT is more than just car tyres. They manufacture tyres for motorcycles, cars, trucks, buses, and other vehicles. The company has a global footprint spanning over 120 countries. Their tyres are trusted across various regions. It focuses on producing top-notch products and embracing innovation to meet the varied requirements of customers in different terrains and locations.

The company caters to a wider range of vehicles. They make tyres for a wide variety of vehicles, including motorcycles, cars, trucks, buses and other types of vehicles.

The company has a strong distribution network in India and abroad. It divided India into regions, and each Regional Distribution Centre (RDG) supplies tyres to Carrying Forward Agents or directly to dealers based on demand.

Carrying Forwarding Agents (CFA) act as intermediaries between RDCs and dealers ensuring efficient delivery of tyres to local retailers.

CEAT has over 4500 dealers and 51,000 sub-dealers in India, which makes their tyres widely available to consumers.

CEAT Consolidated Financial Statements

CEAT Balance Sheet

Key Metrics	FY 2024	FY 2023
Total Assets	9,994	9,627
Total Liabilities	5,951	6,187
Total Equity	4,042	3,439

CEAT Income Statement

Key Metrics	FY 2024	FY 2023
Total Sales	11,943	11,314
Total Expenses	10,858	10,843
Net Profit	614	174

CEAT Cash Flow Statement

Key Metrics	FY 2024	FY 2023
CFO	1,719	1,205
CFI	-853	-849
CFF	-871	-319

Tyre Stocks Comparative Analysis

Tyre Stocks Market Capitalisation (in INR crore)

Company Name	Market Cap (in INR crore)
MRF	55,561
Balkrishna Industries	62,060
Apollo Tyre	31,450
JK Tyre	10,263
CEAT	10,058

Tyre Stocks Current Market Price

Company Name	CMP (in INR)
MRF	1,26,145
Balkrishna Industries	3,210
Apollo Tyre	495
JK Tyre	394
CEAT	2,486

Tyre Stocks Price-to-Earnings Ratio

Company Name	PE Ratio
MRF	26.70
Balkrishna Industries	39.99
Apollo Tyre	17.24
JK Tyre	13.49
CEAT	15.65

Conclusion

The Indian tyre industry showcases a diverse range of companies, each with its unique strengths and specialities. MRF’s legacy and brand recognition, BKT’s focus on Off-Highway Tyres, and Apollo Tyre’s global presence constitute compelling options that cater to the diverse needs of the investors. JK Tyres dominates the trucks/bus Radial segment, while CEAT offers a comprehensive portfolio across various vehicle types. So which tyre stock suits you best? Consider your investment goals, risk tolerance and the specific market segment. The Indian Tyre industry is poised for growth due to rising vehicle production, incomes and infrastructure development. As these trends continue to unfold, the top tyre companies will probably take the lead by pioneering constant innovation and adapting to the ever-evolving needs of the market.

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