Tyre stocks zoom: JK Tyre up 7%, hits new high on huge volume; Ceat adds 5%

Since December 11, the stock price of JK Tyre has appreciated by 10 per cent after the HDFC Mutual Fund acquired 257,305 equity shares or 0.09 per cent stake in the company via open market purchase.

Tyre companies share price movement today

 

Shares of tyre maker rallied up to 7 per cent on the BSE in Friday’s intra-day trade amid heavy volumes on expectations of margin recovery due correction in raw material prices.

 

Among individual stocks, JK Tyre & Industries soared 7 per cent to hit a new high of ₹491.90 in intra-day trade on the back of over seven-fold jump in the average trading volume. The stock surpassed its previous high of ₹477 touched on December 4, 2025. A combined 5.2 million equity shares changed hands on the NSE and BSE. 

 

Share price of Ceat moved higher by 5 per cent to ₹3,925, followed by Apollo Tyres (3 per cent at ₹511), TVS Srichakra (3 per cent at ₹4,233) and MRF (2 per cent at ₹155,360) on the BSE. In comparison, the BSE Sensex was up 0.52 per cent at 84,921.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Why are tyre stocks in focus on Friday?

 

The rubber & crude derivatives form bulk of raw material costs at tyre companies. Consequently, the domestic tyre industry has largely witnessed a volatile margin profile with industry realising healthy margins during periods of benign raw material prices. With blended raw material prices down by 3 per cent sequentially in September 2025 quarter (Q2FY26), domestic tyre players have realised healthy gross margin led profitability gains.

 

Tyre industry is known to have bloated balance sheets owing to high capex intensity. With GST 2.0 reforms expected to meaningfully lift volumes in the auto space in the near to medium term, margins uplift due to benign raw material prices, calibrated capex spends & double digit return ratios, said analysts at ICICI Securities. Post Q2 results the brokerage firm has retained ‘BUY’ rating on Apollo Tyres & value it at ₹605.

 

Since December 11, the stock price of JK Tyre has appreciated by 10 per cent after HDFC Mutual Fund acquired 257,305 equity shares or 0.09 per cent stake in the company via open market purchase. CLICK HERE FOR DETAILS

 

Meanwhile, the government in order to boost consumption has reduced the GST on tyres from 28 per cent to 18 per cent and on farm tyres from 18 per cent to 5 per cent. This GST reduction will act as a catalyst for growth across the sectors and is expected to improve the overall auto demand by 8-9 per cent, JK Tyre said.

 

GST reduction lowered the total cost of ownership for the end consumers which will lead to faster replacement of commercial vehicles on account of an increase in consumption across sectors like FMCG, consumer durables, e-commerce and core sectors which will have a positive impact on tyre demand.  ALSO READ | Shriram Finance jumps 5% as MUFG set to acquire 20% stake in ₹39.6k-cr deal 

JK Tyre has registered its highest-ever consolidated revenue of ₹4,026 crore, up by 10 per cent on a year-on-year (YoY) basis. Consolidated EBITDA for the quarter stood at ₹536 crore with an improved margin of 13.3 per cent. Improved operational performance is a result of higher sales volumes along with softening raw material prices apart from higher operational efficiencies, the company said in the Q2 earnings conference.

 

Meanwhile, ICICI Securities has recommended ‘BUY’ rating on Ceat with a three month target price of ₹4,332 and stop loss at ₹3,548. 

 

Ceat caters different user segments, which include trucks and buses (T&B), light commercial vehicles (LCVs), tractors, 2W and 3W, passenger vehicles and off-road tyres. Over the years, the company has been gradually shifting focus from the lower-margin T&B / LCV segment to margin-accretive PC/UV/OHT segment and 2W segment. This is expected to boost profitability going forward.

 

Ceat have maintained a strong double-digit growth this quarter, with revenue rising by approximately 12 per cent in Q2. One of the key developments in this quarter has been reduction in GST rates on tyres and vehicles, which the management hopes will have a positive impact on demand across domestic categories. 

 

The management have also been excited with Camso fully integrating into the CEAT family effective September, marking a significant milestone in the company’s global premiumisation strategy. Looking ahead, with a positive growth momentum, the management looks forward to double-digit growth in the second half of the year.  ===========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.