Business Standard

Tyre stocks may rerate on sustained demand momentum, margin gains

Recovery in the replacement segment and sales to auto makers to drive volumes


Ram Prasad Sahu

Listen to This Article

Improving volume growth trajectory of auto original equipment manufacturers (OEMs) and earnings recovery led by rising margins are positive triggers for tyre stocks. While companies with a higher exposure to global/European markets could face demand worries given the macroeconomic environment, domestic-focussed companies could see earnings upgrades going ahead.

The near term demand trajectory and Q4 earnings would be the key monitorables. Most segments within the auto sector posted a healthy growth on a YoY basis in the March quarter, led by lower base and festive demand as Navratra/Ugadi fell in March this year from last April levels. The demand momentum

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 18 2023 | 6:17 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to