OFF HIGHWAY TYRES
Balkrishna Industries off-roading well in India & US, Europe to give traction
Balkrishna Industries’ global peers have cut down production as their revenue fell by around 10% in the March quarter, but Balkrishna’s volume grew by 12.9% year-on-year to 82,085 tonnes in the period — the highest in eight quarters.
Balkrishna Industries shares jump 5% post Q4 results
Balkrishna Industries Share Price: Shares of BKT surged 5% on Saturday to its fresh 52-week high of Rs 2,798.95 supported by the company’s solid fourth quarter performance. Its net profit soared 88% while revenue jumped 16% to Rs 2,697 crore on the back of a sales volume of 82,085 MT.
Stay bullish, just change the perspective to long term: 5 mid-cap stocks with upside potential of up to 31%
As the market faces headwinds, questions are bound to be raised about whether the mid-cap segment would see a sharp correction or not. As of now it appears that things are far better both in terms of market breadth and the way the stocks have been able to see a recovery in a short span of time. But the best way to navigate such market conditions would be to do two things, first stay with mid-cap stock with some track record in terms of fundamentals and give return to shareholders. Second, once you pick the stock, stay with it long term and dont sell in hurry due to any narrative which some global development might bring on the table.
Strong Q2 show puts Apollo Tyres back on investor radar
The consolidated operating profit of the Gurugram headquartered Apollo Tyres rose 63% year-on-year to Rs 1,159 crore in the September quarter driven by improving gross margin and cost reduction efforts. Revenue grew by 5% to Rs 6,279 crore. The operating margin expanded by 650 basis points year-on-year to 18.5%.
TVS Srichakra to acquire SG Acquisition Corporation for USD 3 mn
TVS Srichakra Ltd said SG Acquisition Corporation will subsequently assume and take over assets, liabilities and business operations of Super Grip Corporation, USA. "SG Acquisition will focus on off highway tyre products," it said, adding the acquisition would help it in expanding its business in the US.
Divergence in recommendations, but unity in direction: 4 tyre stocks with upside potential of up to 30%
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. Given the fact that natural rubber prices have moved up from the lows and still the companies have been able to deliver bottomline growth and expansion in margins is an indication that the demand tailwinds are extremely favorable. While the risk of headwind in terms of higher input cost stays, will the OEM and replacement demand continue to act as tailwinds?
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TVS Srichakra to acquire US-based firm; to grow off-highway tyre biz
The company's board of directors approved the formation of a subsidiary in the United States market ahead of the acquisition plan. Super Grip Corporation, established in 1984, is engaged in manufacturing of high-quality tyres for the industrial tyre market. "We view the proposed Super Grip transaction with excitement. The company fits in well with our plan to expand our off-highway tyre business globally," TVS Srichakra Ltd Director S Ravichandran said in a company statement
Balkrishna treads on weaker ground in main markets
The volume deceleration in FY23 was due to a contraction of 5-6% in the second half of the fiscal year due to weakness in Europe and the US. The European operations reported volume drop in each of the three quarters to March 2023.
Ceat puts on hold plans to invest in new manufacturing facility for commercial vehicle tyres
The company will instead invest Rs 396 crore in making more profitable off-highway tyres for the European and US markets, managing director Anant Goenka told ET. “We have put on hold our investments in the commercial vehicle unit; margins in this segment are lower. The off-highway tyre segment is more profitable, and we will be investing to enhance capacity in the category.”
In fast lane! How Balkrishna Industries avoided impact of slowdown in auto segment
Balkrishna Industries has a good export presence as 83% of FY22 volumes for the company came from exports. The company has a strong presence in Europe, contributing to 51.6% of the total revenue. As per the company’s recent earnings call, the global market share of the company was about 5%-6%. In segmental sales, the agriculture segments had the majority share of 65.5% in volumes for FY22.
Apollo Tyres’ FY26 goals look ambitious amid cost headwinds
The domestic operations are expected to contribute around $3-3.5 billion to the target revenue, while the European market will account for the rest. Apollo Tyres had consolidated revenue of Rs 20,947 crore in FY22 with an EBITDA margin of 12 per cent.
Stocks in the news: ITC, Bharti Airtel, IOC, DLF, TVS Motors and RBL Bank
ITC, Pidilite Industries, IndiGo, Indian Overseas Bank, Lupin, Indraprastha Gas, AB Fashion, LIC Housing, Route Mobile, Manappuram Finance, Finolex Industries and Shyam Metalics are among the companies which will announce their earnings today.
Yokohama to invest additional $171 million to double capacity of upcoming Vizag plant
The initial plan for the Visakhapatnam plant, which is underway now with the steel structure being erected, was 137 tonne per day capacity at an investment of USD 165 million. The capacity is being ramped up by 120 tonnes more at an investment of an additional USD 171 million, taking the total planned capacity to 257 tonne per day, Gupta, who also heads the global operations of Yokohama Off Highway Tires.
Rising radial demand lifts Apollo Tyres’ appeal
The company aims to double the revenue to $ 5 billion (RS 36,000 crore) by FY2026 which implies an annual growth of 15 per cent. Revenue had grown by 7 per cent annually between FY17 and FY21.
Smallcap tyre firm shows going gets tougher for India Inc
Analysts now say CEAT, a smallcap tyre manufacturer, appears to be getting bruised badly from the jolts. They say rising raw material costs, declining demand and lower cash flow generation will likely hurt the stock’s prospects in the coming year.
50 pc employees at Vizag plant to be women: Yokohama Off-Highway Tires
Currently, 7 per cent of its total workforce are women, and there are 108 women on the shopfloor, he said adding that over the next two years 15 per cent of the total workforce will be women. "As of March, there are 108 women on the floor, including six supervisors who lead these two teams."
Down 10% in 2 days, this tyre stock may remain under pressure amid capex plans
The tyre capacity expansion, which will be completed by the second half of FY23 is aimed at catering higher demand and has an estimated payback period of four years at the profit before tax level.
TVS Srichakra to invest Rs 1000 crore in capex
This investment is planned to be made over a three year period this will result in an increase in 2 & 3-wheeler tyre capacity by 25-30% and doubling of off-highway tyre capacity from current levels. The investment is planned to be funded by a mix of debt and internal accruals.
Ceat Tyres eyes export opportunities for speciality tyres in Europe, North America
Tyre maker Ceat is looking at export opportunities for its speciality tyres in Europe and North America, and is also exploring new markets for radial tyres for buses and trucks, a senior company executive said.
Off-highway tyre maker Alliance Tire to invest Rs 1,240 crore in third plant at Visakhapatnam
The proposed $ 165-million plant will add over 20,000 tonnes per annum (55 tonne per day rubber weight) capacity to the 2.3-lakh-tonne annual production from two India plants and will be commissioned by the first quarter of 2023.
Upside looks limited for Balkrishna Industries on slowing demand trend
Balakrishna caters to the agriculture, and industrial sectors including mining.
Balkrishna’s valuation premium over tyre peers likely to deflate
The application of off-highway tyres is in the agricultural and mining sectors.
Ceat lines up Rs 3,500 crore capex to ramp up production capacity
The RPG Enterprise flagship firm said it has already put in capital to expand its Halol plant.
Apollo Tyres takes a knock from Kerala floods
The company produces commercial vehicle tyres and off-highway tyres at the two plants.
Andhra Pradesh to sign over 281 MoUs worth Rs 2.56 lakh crore at CII Partnership Summit
The estimations were based on the interest evinced by corporates so far, weeks before the CII Partnership Summit to take off, the officials said.
Apollo tyres plans to use Rs 1,500-cr QIP proceeds to expand operations
Apollo Tyres has, in fact, firmed up plans to invest Rs 525 crore in a greenfield facility in Andhra Pradesh, construction work of which is expected to commence in January 2018.
Rise in tyre demand, product mix to drive Balkrishna’s growth
Recovery in off-highway tyre market to help co in boosting its revenue
This stock turned Rs 1 lakh into Rs 6 crore in 15 years; missed it?
Data shows four stocks from tyre sector have surged over 5,000 per cent in last 15 years.
Yokohama Rubber-Alliance Tire Group deal gets CCI nod
KKR is the majority stakeholder in ATG and the rest is held by International Finance Corporation along with other entities.
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