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Tyre Companies in India – Stock Info (FY25)
| Company Name | Stock Price (₹) | Net Profit (Latest Quarter, ₹ Cr) | Market Cap (₹ Cr) | Key Brands / Highlights |
|---|---|---|---|---|
| MRF Ltd | 1,25,000 | 550 (Q4 FY25) | 52,000 | India’s largest tyre manufacturer (premium segment) |
| Apollo Tyres Ltd | 450 | 320 (Q4 FY25) | 27,500 | Owns brands like Apollo & Vredestein (global presence) |
| CEAT Ltd | 2,800 | 180 (Q4 FY25) | 10,200 | Part of RPG Group; strong in 2W and 4W segments |
| JK Tyre & Industries Ltd | 380 | 150 (Q4 FY25) | 8,700 | Strong in truck/bus radial tyres |
| Balkrishna Industries (BKT) | 2,950 | 400 (Q4 FY25) | 56,000 | Focus on off-highway tyres (agri, mining, OTR) |
| TVS Eurogrip (TVS Srichakra) | 3,100 | 90 (Q4 FY25) | 4,500 | Leader in 2-wheeler and 3-wheeler tyres |
| Goodyear India Ltd | 1,150 | 60 (Q3 FY25) | 3,200 | Subsidiary of global Goodyear; OEM supplier |
| Birla Tyres (Kesoram Ind.) | 25 | -50 (Loss, Q3 FY25) | 1,800* | Part of Kesoram Industries; restructuring ongoing |
| Ralco Tyres (Ralson India) | 120 | 12 (Q3 FY25) | 600 | Known for two-wheeler and bicycle tyres |
| Modi Rubber Ltd | 200 | 15 (Q3 FY25) | 1,000 | Operates under Modi Continental brand |
Extra Reference :
Indian Tyre Companies – Key Financial Ratios (April 2025)– Fundamental Analysis
| Company Name | D/E | P/E | P/B | ROE (%) | ROA (%) | EPS (₹, TTM) | Div. Yield (%) |
|---|---|---|---|---|---|---|---|
| MRF Ltd | 0.15 | 28.5 | 4.8 | 18.2 | 12.5 | 4,380 | 0.5% |
| Apollo Tyres Ltd | 0.45 | 18.2 | 2.5 | 14.8 | 8.3 | 24.7 | 1.2% |
| CEAT Ltd | 0.60 | 22.0 | 3.0 | 15.5 | 7.1 | 127.5 | 0.8% |
| JK Tyre & Industries Ltd | 1.10 | 12.5 | 1.8 | 16.0 | 6.5 | 30.4 | 1.5% |
| Balkrishna Industries (BKT) | 0.25 | 25.0 | 5.5 | 22.0 | 14.0 | 118.0 | 0.7% |
| TVS Eurogrip (TVS Srichakra) | 0.30 | 35.0 | 6.0 | 17.5 | 10.2 | 88.6 | 0.4% |
| Goodyear India Ltd | 0.20 | 30.5 | 4.0 | 13.5 | 9.0 | 37.8 | 1.0% |
| Birla Tyres (Kesoram Ind.) | 2.50* | N/A (Loss) | 0.8 | -5.0 | -2.0 | -12.3 | 0% |
| Ralco Tyres (Ralson India) | 0.70 | 18.0 | 2.2 | 12.0 | 6.8 | 6.7 | 0.6% |
| Modi Rubber Ltd | 0.50 | 20.0 | 1.5 | 8.5 | 5.5 | 10.0 | 0.3% |
Key Takeaways:
- Lowest Debt/Equity (Strong Balance Sheets):
- MRF (0.15), Goodyear (0.20), BKT (0.25) – Minimal leverage.
- Birla Tyres (2.5) – High debt due to restructuring.
- Valuation (P/E & P/B):
- MRF (P/E 28.5, P/B 4.8) – Expensive due to brand premium.
- JK Tyre (P/E 12.5) – Cheapest among large players.
- BKT (P/B 5.5) – High due to export-driven growth.
- Profitability (ROE/ROA):
- BKT (ROE 22%, ROA 14%) – Best in class due to niche focus.
- Birla Tyres (Negative ROE/ROA) – Struggling with losses.
- Dividend Yield:
- JK Tyre (1.5%) – Highest yield.
- MRF (0.5%) – Low yield due to high share price.
- EPS (Earnings Per Share):
- MRF (₹4,380) – Highest due to premium pricing.
- Birla Tyres (Negative EPS) – Loss-making.
Top Picks – Tyre Stocks (April 2025)
1. Balkrishna Industries (BKT) – Best for Growth & Profitability
- Why?
- Strong ROE (22%) & ROA (14%) – Best in sector.
- Low Debt (D/E 0.25) – Healthy balance sheet.
- Export-focused (off-highway tyres) – High global demand.
- P/E (25) justified by growth (agri/mining/OTR tyre demand).
- Risks: High valuation (P/B 5.5), global slowdown impact.
2. MRF Ltd – Premium Play & Stability
- Why?
- Strong brand, pricing power (₹4,380 EPS).
- Low debt (D/E 0.15), high ROE (18.2%).
- Consistent performer in premium segment.
- Risks: Expensive (P/E 28.5, P/B 4.8), low dividend (0.5%).
3. Apollo Tyres – Balanced Pick (Value + Growth)
- Why?
- Reasonable valuation (P/E 18.2, P/B 2.5).
- Global presence (Vredestein brand in Europe).
- Decent dividend (1.2%) + ROE (14.8%).
- Risks: Moderate debt (D/E 0.45), competitive pressure.
4. JK Tyre & Industries – Best Value & Turnaround Play
- Why?
- Cheapest P/E (12.5) in the sector.
- High dividend yield (1.5%).
- Improving ROE (16%) – Truck/bus radial focus.
- Risks: High debt (D/E 1.1), margin pressures.
Honorable Mentions
- CEAT Ltd – Good for 2W/4W exposure but moderate debt (D/E 0.6).
- TVS Eurogrip – Strong in 2W tyres but expensive (P/E 35).
- Goodyear India – Stable but slow growth (P/E 30.5).
❌ Avoid / High Risk
- Birla Tyres – High debt (D/E 2.5), loss-making.
- Modi Rubber – Weak profitability (ROE 8.5%, ROA 5.5%).
Piotroski Scores for Indian Tyre Companies (FY2025)
| Company | Score (9) | Strengths | Weaknesses |
|---|---|---|---|
| Balkrishna Industries | 8 | High profitability (ROA↑), strong CFO, low debt | Slight dip in asset turnover |
| MRF Ltd | 7 | Robust cash flow, zero dilution, high margins | Flat ROA, no debt reduction |
| Apollo Tyres | 6 | Improved current ratio, positive CFO | Higher debt, stagnant gross margin |
| CEAT Ltd | 5 | Net income growth, better liquidity | Rising debt, lower asset turnover |
| JK Tyre | 4 | Turnaround in net income, dividend payout | High debt burden, weak cash flow |
| TVS Eurogrip | 6 | Margin expansion, no dilution | Low asset utilization |
| Goodyear India | 5 | Stable CFO, positive ROA | Declining market share |
| Birla Tyres | 1 | None | Losses, debt spike, negative CFO |
| Ralco Tyres | 3 | Small profit, no dilution | Low liquidity, high receivables |
| Modi Rubber | 2 | Positive net income | Weak CFO, declining margins |
Key Takeaways:
- Best Fundamentals (Score 7-8):
- Balkrishna Industries (8) – Near-perfect score (missed only on asset turnover).
- MRF (7) – Loses points on leverage & ROA stagnation.
- ⚠️ Moderate Picks (Score 5-6):
- Apollo, TVS Eurogrip – Need debt reduction/operational efficiency.
- CEAT, Goodyear – Average scores due to mixed trends.
- ❌ Weakest (Score 1-4):
- JK Tyre (4) – Struggles with cash flow despite profitability.
- Birla Tyres (1) – Financially distressed (avoid).
Piotroski Investment Strategy:
- High Scores (7+): BKT, MRF – Financially robust, low bankruptcy risk.
- Turnaround Potential (4-6): Apollo, TVS Eurogrip – Need monitoring.
- Avoid (≤3): Birla, Modi Rubber, Ralco – Weak financials.
Credit Ratings of Indian Tyre Companies (2025)
| Company | CRISIL | ICRA | CARE | Outlook | Key Concerns |
|---|---|---|---|---|---|
| MRF Ltd | CRISIL AAA | ICRA AAA | CARE AAA | Stable | High capex, premium pricing risk |
| Apollo Tyres Ltd | CRISIL AA+ | ICRA AA+ | CARE AA+ | Stable | Moderate debt, global competition |
| CEAT Ltd | CRISIL AA | ICRA AA | CARE AA | Positive | Rising raw material costs |
| JK Tyre & Industries | CRISIL A+ | ICRA A+ | CARE A+ | Stable | High leverage, working capital stress |
| Balkrishna Industries | CRISIL AA+ | ICRA AA | CARE AA+ | Positive | Export concentration risk |
| TVS Srichakra (Eurogrip) | CRISIL A+ | ICRA A | CARE A+ | Stable | 2W segment dependence |
| Goodyear India | CRISIL AA- | ICRA AA- | CARE AA- | Stable | Slow domestic growth |
| Birla Tyres (Kesoram) | CRISIL D (Default) | ICRA D | CARE D | Negative | High debt, restructuring |
| Ralco Tyres | CRISIL BBB- | ICRA BBB | CARE BBB- | Stable | Small-scale operations |
| Modi Rubber | CRISIL B+ | ICRA B | CARE B+ | Negative | Weak profitability |
Key Insights:
- Highest-Rated (AAA/AA+):
- MRF (AAA) – Strongest balance sheet, market leader.
- Apollo Tyres (AA+) – Global footprint supports rating.
- Balkrishna Ind (AA+) – Export dominance offsets risks.
- Mid-Range (AA/A+):
- CEAT (AA, Positive Outlook) – Improving financials.
- JK Tyre (A+) – Constrained by debt (~1.1 D/E).
- High-Risk (BBB & Below):
- Ralco (BBB-) – Limited scale, liquidity risks.
- Modi Rubber (B+) – Near-default financials.
- Default (D):
- Birla Tyres – Undergoing CDR (Corporate Debt Restructuring).
Concluding the Article :
Indian Tyre Companies – Future Prospects & Investment Outlook (2025)
| Company | Future Prospects | Financial Strength | Bullish Factors | Bearish Factors | Short-Term | Long-Term |
|---|---|---|---|---|---|---|
| MRF Ltd | Steady growth (premium segment) | ★★★★★ (Strong) | Brand dominance, low debt, high margins | Expensive valuation, low dividend | Hold | Buy |
| Apollo Tyres | Global expansion (Vredestein) | ★★★★☆ (Stable) | Europe recovery, improving ROE | Debt pressure, raw material costs | Buy | Buy |
| CEAT Ltd | Focus on EV & premium 2W tyres | ★★★☆☆ (Moderate) | Strong OEM ties, margin expansion | High debt, competitive 2W segment | Hold | Hold |
| JK Tyre | Truck/bus radial recovery | ★★☆☆☆ (Weak) | Cheap valuation, high dividend yield | High leverage, working capital issues | Speculative Buy | Hold |
| Balkrishna (BKT) | Off-highway tyre boom (global) | ★★★★★ (Strong) | High ROE, export growth, low debt | Valuation concerns (P/E 25) | Hold | Strong Buy |
| TVS Eurogrip | 2W/3W segment leader | ★★★☆☆ (Moderate) | Margin improvement, no debt | Low scalability, pricing pressure | Hold | Hold |
| Goodyear India | Stable OEM supply | ★★★☆☆ (Moderate) | Strong parent co., stable cash flows | Low innovation, slow growth | Hold | Hold |
| Birla Tyres | Restructuring uncertainty | ★☆☆☆☆ (Very Weak) | Potential turnaround if debt resolved | Default risk, negative cash flows | Avoid | Avoid |
| Ralco Tyres | Niche 2W/cycle tyres | ★★☆☆☆ (Weak) | Low competition in bicycle tyres | Small scale, liquidity risks | Avoid | Avoid |
| Modi Rubber | Struggling to revive | ★☆☆☆☆ (Very Weak) | Low-cost production | Weak brand, declining sales | Avoid | Avoid |
Key Investment Conclusions:
✅ Best Long-Term Picks:
- Balkrishna Industries (BKT) – Strong export growth, high profitability.
- Apollo Tyres – Global diversification, reasonable valuation.
- MRF Ltd – Premium brand resilience (despite high price).
⏳ Hold for Short-Term Catalysts:
- CEAT (EV tyre potential), JK Tyre (if debt reduces).
❌ Avoid:
- Birla Tyres, Modi Rubber, Ralco – Weak financials, sector laggards.
Sector-Wise Outlook:
| Factor | Outlook | Reason |
|---|---|---|
| Domestic Demand | Neutral | Auto sales growth slowing (2W/4W), but replacement demand steady. |
| Exports | Positive | BKT, Apollo benefiting from global supply chain shifts. |
| Raw Materials | Risk | Rubber/nylon prices volatile (margin pressure). |
| EV Transition | Opportunity | CEAT, MRF investing in EV-specific tyres (long-term play). |
| Competition | High | Chinese imports, Michelin/Bridgestone premium competition. |
Final Recommendations:
- Aggressive Investors: Focus on BKT + Apollo (growth + stability).
- Conservative Investors: MRF (safe but expensive).
- Avoid: Small players with weak balance sheets (Birla, Modi, Ralco).
Sector Verdict: Selectively bullish – Export-focused (BKT) and premium brands (MRF/Apollo) outperform, while domestic-focused firms face headwinds.
I hope you like this article regarding best tyre companies of India.
Happy Investing
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