Shareholders of leading tyre manufacturers have reasons to celebrate as the stocks of these companies have been trending upward for the last one year, with the majority of them registering fresh all-time highs.
CEAT, one of the largest tyre manufacturers in India, has witnessed a fabulous surge in its share price since last June, appreciating from ₹991 apiece to the current level of ₹1,927, resulting in a stellar gain of 94.5%.
In May, the stock crossed the ₹2,000 mark for the first time and also recorded an all-time high of ₹2,185. This strong rally in the stock came after the company delivered a robust performance for the March-ending quarter, driven by a fall in raw material costs.
Similarly, another tyre major, Apollo Tyres, also saw a sharp rise in its share price in the last one-year period, rewarding its shareholders with an 81% gain. Continuing their strong upward trajectory, the shares marked a fresh all-time high of ₹396.8 in today's trade.
The shares have exhibited a strong bullish trend, delivering positive returns in nine out of the last eleven months. Further, over the past decade, the stock has demonstrated exceptional performance, generating an impressive return of 600%.
The next top gainer in the list was TVS Srichakra, part of the TVS automotive-ancillary group, which has seen a remarkable surge in its share price, soaring from ₹1,686.65 to ₹2,875 apiece, generating a return of 70.45%. Between June 2022 and January 2023, the stock demonstrated a strong performance, gaining by nearly 144% to register a record high of ₹3,699 apiece.
Likewise, JK Tyre & Industries shares have been on a bull run since June last year, and have rallied 68.5% to date. Despite this solid performance, brokerage firm ICICI securities in its latest report maintained its 'buy' rating on the stock with a target price of ₹210 apiece.
The brokerage laid out some of the key triggers for the stock's future price performance, including an increase in domestic demand, specifically in the commercial vehicle (CV) segment, due to higher fleet utilization, a pick-up in replacement demand, and the implementation of vehicle scrappage policies.
|% Return in the last one year
|JK Tyre & Industries
MRF, known for holding the title of being the most expensive stock in the Indian stock market, has witnessed a further increase in its value, making it even pricier. The company's shares, which were trading at ₹74,712 apiece a year ago, have jumped 29.5% to the current level of ₹96,797.
Notably, the stock soared 12.27% in May to record an all-time high of ₹99,933 apiece. Over the past 15 years, the stock has witnessed an impressive growth of 2274%.
Goodyear India was another stock that has delivered a decent performance in the last one year, gaining by around 17%. Currently, the stock is trading at a level that is 27.30% above its 52-week low of ₹935. During the period from April to May 2023, the stock witnessed a significant surge, rising by 20.30% to register a new 52-week high of ₹1,286.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.