Tyre Stocks Rally: CEAT, JK Tyre & Industries, and MRF Share Price Surge After Q4 Results

Market Performance

Shares of CEAT, JK Tyre & Industries, and MRF witnessed a significant rally following the release of their Q4 FY24 financial results.

• CEAT share price surged 22%, climbing from ₹3,060 to ₹3,728 in just 16 trading sessions.
• The stock even touched a fresh all-time high of ₹4,044.
• JK Tyre & Industries saw a 9% increase in its share price following the earnings announcement.
• MRF's share price gained 7% after announcing its Q4 performance.
• Apollo Tyres also joined the momentum with a 5.5% rise in stock price.

This bullish trend across the tire sector highlights growing investor interest and reflects the segment's resilience.

Main News

The sharp rally in the share prices of CEAT, JK Tyre & Industries, and MRF came despite subdued demand in the OEM (Original Equipment Manufacturer) segment. The real growth driver was the strong replacement demand from retail consumers.

Another supporting factor was the stability in raw material prices during the quarter, which remained essentially flat compared to the third quarter. While the rupee's depreciation against the dollar posed a challenge, price hikes during the year helped tire makers cushion the impact of input costs.

Company Details

CEAT

• CEAT reported substantial Q4 numbers, which fueled a 22% jump in its stock price.
• The company Share Price recently crossed the ₹4,000 milestone for the first time.
• CEAT has been expanding in the premium tire segment, introducing:
  • Run Flat Tyres
  • Z-rated 21-inch radials
  • CALM Tyres (designed for EVs)
• It currently commands a 20–25% market share in the electric two-wheeler and electric passenger vehicle categories.

JK Tyre & Industries

• The share price rose 9% following a strong quarterly performance.
• JK Tyre's premiumization strategy continues to pay off with increasing traction for its high-end products:
  • Leuitas Ultra
  • Smart Tyre
  • Ranger Series
  • Puncture Guard (Passenger Vehicles)
  • XF, XM, XD Series (Commercial Segment)

MRF

• MRF's Q4 results pushed its stock up by 7%.
• The company benefitted from stable input costs and consistent demand in the replacement market.

Summary

The impressive Q4 results of CEAT, JK Tyre & Industries, and MRF have triggered a notable upswing in their stock prices. Key performance drivers included:

• Robust replacement demand
• Flat raw material prices
• Strategic price adjustments
• Focus on premium and EV-friendly tyres

As the tire sector evolves, companies like CEAT, JK Tyre & Industries, and MRF are leading the charge, reflecting their adaptability and market strength.