favourable news for tyres

  Best Tyre Stocks Quantitative Analysis Introduction: According to an industry report, the domestic automobile industry, which is currently the fourth largest in the world, is expected to become the third largest by 2021. The industry (including component manufacturing) is expected to grow at a compounded annual growth rate of 5.9 percent and reach USD 251.4-282.8 billion by 2026, thereby becoming the fastest-growing industry in the country, as per the report. The domestic tire industry has benefited from strong growth in both original equipment (OE) and replacement segments in the ongoing fiscal, according to Icra note. Please note  that we have done this analysis with the only purpose of screening good companies. The analysis done is completely on a quantitative basis. No suggestions are being made to directly go and invest in the top-scoring companies of this analysis. We suggest that one should perform a qualitative analysis of top-scoring companies in this analysis and t...

Tire industry in the sweet spot with favorable demand prospects: ICRA The domestic tire industry is expected to post volume growth of 7-8% to almost 1,805 lakh tires during FY18, despite the weak volumes during Q1 and part of Q2 during GST roll-out. In tonnage terms, tire demand is estimated to grow by nearly 7% during FY18 supported by a pick-up in T&B replacement demand after over two years of weak growth, and for FY19, the unit, and tonnage growth is pegged at 8-8.5% and 6.5-7% respectively, as per an ICRA note. Says Mr. Subrata Ray, Sr. Group Vice President, Corporate Sector ratings, ICRA, “Tyre volumes across all the commercial segments de-grew during H1FY18 due to Goods and Service Tax (GST) implementation which impacted Q1FY2018 demand due to de-stocking by dealers. However barring this short-term aberration, the domestic tire demand has remained favorable during the year and is likely to recover in H2FY2018. Further, a rebound in automotive production across product segment...