MRF TYRES
Will tyre stocks see a good ride of momentum going ahead? Pramod Amthe answers
There is a higher probability that either they will be eased out or will be expanded to add up more industries or to that extent more companies to participate in this overall scheme of things, as the stability of the new government seems to be a new attraction for the medium-term capex to come through.
Tyre stocks surge up to 13% amid reports of price rise
MRF, India's highest-priced stock, gained attention on Monday's BSE session due to reports of a price increase effective July 18. This led to a surge in tyre stocks: JK Tyre & Industries rose 13%, CEAT jumped 7%, Apollo Tyre gained 5%, and MRF shares increased 4% to Rs 1,34,281.
Tailwinds are winning, beneficiaries of strong OEM & replacement demand from auto sector: 5 tyre stocks with upside potential of up to 38%
It is a well known fact that if demand is growing at a fast pace, higher input cost can be easily passed on to the consumer. That is probably what the tyre industry is going through currently. Recently there was an increase in natural rubber prices and fears were expressed that margins might come under pressure. But two things happened just recently, the natural rubber prices corrected and the whole of the tyre stocks witnessed a sharp rally. While the risk of headwind in terms of higher input cost stays, will the OEM and replacement demand act as tailwinds and continue to power the stocks.
Hot Stocks: Brokerage view on Siemens, Bharti Airtel, Apollo Tyres and Shree Cement
Brokerage firm Macquarie retained a neutral rating on Shree Cement, while JPMorgan maintained a neutral rating on Apollo Tyres. UBS also upheld a neutral rating on Bharti Airtel, and Jefferies recommended a buy rating on Siemens.
Beneficiaries of strong OEM and replacement demand from auto sector: 5 tyre stocks with upside potential of up to 34%
Like every other agro commodity in the world, even the price of natural rubber has seen a spike in the last one year. But given the fact that if demand is growing at a fast pace, higher input cost can be easily passed on to the consumer. That is probably what the tyre industry is going through currently. Despite the fact that natural rubber prices have moved up still the companies have been able to deliver bottomline growth and expansion in margins in the last two quarters. The question is whether the lag effect of rising raw material prices impact the performance of Q4 and subsequent ones or if OEM and replacement demand continue to act as tailwinds?
Amit Shah declares more than Rs 1 crore worth of shares in each of these 10 stocks
BJP leader Amit Shah has declared a diverse stock portfolio, with investments in over 180 companies. Their top 10 stock bets are concentrated in specific companies, with significant holdings in various sectors like banking, FMCG, and pharma.
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Under Pressure! How much MRF, Ceat and other tyre stocks lost in March
Tyre stocks such as Apollo Tyres, CEAT, MRF, and JK Tyre, among others, have lost up to 21% since the beginning of March as their profitability is under pressure due to surging raw material prices. Take a look at how much have stocks of tyre companies lost in this month so far (Source: Ace Equity)
Tyre stocks likely to remain under strain on rising raw material costs
Price of natural rubber, a major raw material, trades at a near decade high level. Any change in the spot prices of inputs affects the financials of tyre companies with a lag of 60-90 days. The current surge in rubber price is expected to reduce the gross margin by 150-200 basis points and may lead to an earnings downgrade of 8-12% for the next fiscal year.
Tyre stocks set to loosen grip on D-St. Sell MRF, Ceat, 2 more counters, says Kotak Equities
India's most expensive stock MRF has risen by nearly 60% over the past 12 months though the rally has remained subdued in 2024 so far. In contrast, Nifty Auto has delivered superior returns at 68% in this period while broader Nifty's returns stand at 29%.
Shares of tyre companies decline on surge in raw material prices
JK Tyre fell 4.35% on Tuesday while MRF Tyres and Goodyear India declined 3.32% and 2.39% respectively. Apollo moved down 0.59% while CEAT and Bridegstone were up by 0.44% and 2.74% respectively. Benchmark Nifty slumped over 1%, while Nifty Auto Index fell 0.45%.
MRF, Honeywell, other pricey stocks: Does high price mean high value or does it hide underlying issues?
The higher prices of stock offerings may sometimes conceal underperformance or liquidity concerns.
INROAD project converts nearly 70,000 hectares into natural rubber plantations in northeast in three years
In tune with the spirit of 'Atmanirbhar Bharat’, INROAD (Indian Natural Rubber Operations for Assisted Development), a project for supporting development of 2 Lakh hectares of rubber plantations in North East is being undertaken under the Ministry of Commerce & Industry.
MRF Q3 Results: Consolidated PAT jumps 191% YoY to Rs 510 crore; interim dividend of Rs 3/share declared
MRF Q3 Results: The revenue from operations for the said quarter increased by 9% YoY to Rs 6,162.46 crore from Rs 5,644.55 crore reported by the company in the year-ago period.
India's highest-priced stock just got pricier; MRF shares hit Rs 1.5 lakh mark
In Wednesday's trade, MRF stock witnessed a total of 27,248 equity shares worth Rs 384.6 crore changing hands on NSE. Other than MRF's stock, Page Industries (Rs 37,770), Honeywell Automation India (Rs 37,219), 3M India (34,263) and Shree Cement (Rs 26,527) are other highest-priced stocks in India.
Five Indian tyre makers in global top 30 list: ATMA
ATMA said in the last 10 years, Apollo has moved up four places, while JK Tyre has advanced six places. On the other hand, CEAT moved up 13 places, while off-road major BKT jumped 14 places. MRF is ranked 3rd in Asia after Bridgestone and Yokohama in terms of the number of plants, it added.
5 lucrative sectors to bet on this Diwali season for profits
This often leads to increased buying and selling activities in the stock market. Notably, the Indian stock market has been relentlessly defying odds since last year and maintained a strong growth trajectory despite the ongoing global crisis.
How will Maruti Suzuki and Hero Motocorp fare in Q2? Aniket Mhatre answers
“Maruti seems to be doing very well related to peers and EV transition in passenger vehicles has not yet picked up. So to that extent, Maruti has not been as impacted with EV transition relative to what two-wheelers have faced. While Hero MotoCorp has seen a slew of new launches, the market share recovery has not happened yet. ”
Q2 results season kicks off this week. 32 companies may report over 100% profit growth
Domestic cyclicals like banks, auto and capital goods are likely to lead earnings growth while healthcare and technology may clock a moderate earnings growth. Motilal Oswal sees Nifty earnings growing by 21% YoY in Q2 while Kotak Equities has predicted 23% growth.
As World Cup starts, ICC releases stringent advisories for brands
The International Cricket Council (ICC) has issued strict advisories and guidelines to prevent unauthorised associations with the ICC World Cup. The move comes as numerous brands across various sectors seek to leverage their association with the tournament. The ICC sponsors include Mastercard, Thums Up, and Dream11, among others
ICC may earn up to $150 million in World Cup sponsorship fee
The world cricket governing body has 20 sponsors and partners for ICC World Cup 2023. It has six global partners that are paying $8-10 million for these sponsorship slots. The global partners include MRF Tyres, Booking.com, IndusInd Bank, MasterCard, Aramco and Emirates. IndusInd and MasterCard have come in as global partners following the exit of Byju's and BharatPe.
The story of a Rs 1,788 crore fine: Tyre makers, cartelisation and calculation errors
The Supreme Court of India has asked the Competition Commission of India (CCI) for a response regarding an appeal filed by MRF Ltd, one of the companies fined in a case related to alleged cartelisation and price manipulation in the tyre industry. The case, which began over a decade ago, saw the CCI impose penalties on several tyre companies in 2018. However, the National Company Law Appellate Tribunal overturned the order in December 2022 and directed the CCI to pass a fresh order, citing errors in calculation and the need to save the domestic tyre industry.
Fine on tyre companies: Supreme Court seeks CCI's reply on MRF plea
The CCI had, in August 2018, imposed penalties totalling more than ₹1,788 crore on the tyre companies and also asked them to cease and desist from indulging in unfair business practices.
ICC net surplus down 36 per cent in 2022, revenue also declines
The International Cricket Council (ICC) has seen a 36% drop in net surplus for the fiscal year ending December 31, 2022, with revenue falling by 7% to $432 million. The ICC earns the majority of its revenue from media rights and sponsorships, with approximately 80% of its revenues coming from the Indian market.
ICC, IndusInd to ink multi-year sponsorship deal
IndusInd Bank has agreed to a multi-year sponsorship deal with the International Cricket Council (ICC) that will start with the men's Cricket World Cup in India. The ICC's other top-tier sponsors include MRF Tyres, Booking.com, Aramco, and Emirates.
Mastercard signs up as ICC sponsor for 2023 World Cup
Mastercard chief marketing and communications officer Raja Rajamannar said the company will be spending a significant sum to get the right kind of visibility during the World Cup. Incidentally, Mastercard was also the title sponsor for all bilateral matches played in India until March.
Apollo Tyres, Samvardhana Motherson among BSE Auto index stocks which hit new 52-week highs
Apollo Tyres, a leading manufacturer of automotive tires, achieved a significant milestone by hitting a new 52-week high of Rs 433.75. The company is known for its cutting-edge technology, superior quality, and extensive product range
Is this the right time to buy tyre and railway stocks? Sandip Sabharwal answers
“Three-four months down the line when prices of tyre stocks have come off because of bad results etc., we could buy them because these are cyclical industries. These are not secular growth industries. We need to time these stocks. Agro chemicals is a space that cannot be ignored and we could look for opportunities as stocks correct.”
JK Tyre Q4 Results: Profit rises nearly three-fold to Rs 1.08 billion
JK Tyre & Industries Ltd's fourth-quarter profit rose nearly threefold as raw material costs fell and domestic demand saw a boost. The tyre-maker supplies to Maruti Suzuki India Ltd and Tata Motors Ltd, and its revenue from operations grew almost 10%. Rubber prices have softened 3% from the December quarter, when the effects of easing prices had already begun reflecting in the company's bottomline. Cost of raw materials fell more than 4% to 21.
After a rally, tyre stocks may face the heat from slowing replacement demand
In the current fiscal year, a major factor that is likely to impact the performance of these companies is the muted replacement demand for tyres as reflected in rising discounts. The replacement demand accounts for 50-55% of the total volume of the tyre makers with a high profitability.
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