Best Tyre Companies in India for Stock Investment – Detailed Market Analysis

In this share market blog you are going to get full stocks analysis of Best Tyre companies of India, so read it full.

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 :

NSE

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%

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Key Takeaways:

1. 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.
2. 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.
3. Profitability (ROE/ROA):
   • BKT (ROE 22%, ROA 14%) – Best in class due to niche focus.
   • Birla Tyres (Negative ROE/ROA) – Struggling with losses.
4. Dividend Yield:
   • JK Tyre (1.5%) – Highest yield.
   • MRF (0.5%) – Low yield due to high share price.
5. 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.

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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%).

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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

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Key Takeaways:

1. Best Fundamentals (Score 7-8):
   • Balkrishna Industries (8) – Near-perfect score (missed only on asset turnover).
   • MRF (7) – Loses points on leverage & ROA stagnation.
2. Moderate Picks (Score 5-6):
   • Apollo, TVS Eurogrip – Need debt reduction/operational efficiency.
   • CEAT, Goodyear – Average scores due to mixed trends.
3. Weakest (Score 1-4):
   • JK Tyre (4) – Struggles with cash flow despite profitability.
   • Birla Tyres (1) – Financially distressed (avoid).

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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

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Key Insights:

1. 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.
2. Mid-Range (AA/A+):
   • CEAT (AA, Positive Outlook) – Improving financials.
   • JK Tyre (A+) – Constrained by debt (~1.1 D/E).
3. High-Risk (BBB & Below):
   • Ralco (BBB-) – Limited scale, liquidity risks.
   • Modi Rubber (B+) – Near-default financials.
4. 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:

1. Balkrishna Industries (BKT) – Strong export growth, high profitability.
2. Apollo Tyres – Global diversification, reasonable valuation.
3. 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.

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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.

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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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