Tyre stocks may continue to underperform as margin worries weigh

Price hikes by companies have not been enough to absorb the sharp rise in input costs

Listed tyre makers could face more margin headwinds going ahead given the sharp rise in natural rubber prices, elevated crude oil prices and limited price hikes. From their lows in the December quarter last year, natural rubber prices which are currently at about Rs 192 per kg have risen by a sharp 45 per cent. The increase in the current quarter as compared to Q2 has been 17 per cent. Similarly, while Brent crude oil prices have slipped below the $80 a barrel mark, they are still 17 per cent higher than the lows in August. While natural rubber prices