Running Flat

The stocks of tyre industry have fluctuated majorly over the last three months. For the period October 1, 2002, to February 7, 2003, stocks of most companies have risen and subsequently fallen to settle near the October levels. The downswing typically started in the month of December.

The stock price of Apollo tyres rose by 29.62 per cent in the period. The stock price rose from Rs 111.90 on October 1, 2002, to Rs 145.05 on December 12, 2002. However, subsequently, the price of the company has fallen to Rs 119.25 as on February 7, 2002. This represents a rise of 6.57 per cent.

 

The case with MRF was similar. The stock price rose by 6.51 per cent from Rs 876 on October 1, 2002, to touch Rs 933 on December 23, 2002. Subsequently, the stock price has fallen to Rs 887 on the Bombay Stock Exchange.

Apollo Tyres was also similar. The stock rose 29.62 per cent to touch Rs 145 on December 12, 2002. It rose from Rs 111.9 on October 1, 2002. Subsequently, the price fell to touch Rs 119.25 on February 7, 2003, registering a gain of just 6.56 per cent over October 1 to February 7.

The trigger for the rise in prices seems to be the resultsd declared by the companies for the second quarter of financial year 2003. The companies showed a good increase in the net profits.