Agartala (Tripura) Aug 16: Stock market outlook for tyre companies seems to be encouraging as experts predict a bullish trend for tyre company stocks based on current market conditions.
The June quarter results show that all major tyre companies have reported increased profits.
Rising domestic demand for tyres, coupled with lower oil and raw material prices, has reduced production costs, boosting overall profitability for these companies.
However, investors should remain cautious before buying tyre stocks, as low-cost tyre imports from China pose a significant challenge to domestic companies.
This, along with market corrections, has led to a decline in tyre stock prices. Select tyre company stocks, available at lower prices, could be purchased in small quantities.
The key question is: which tyre company stocks should you consider? June quarter results reveal that CEAT and MRF reported sales growth of 0.58% and 6.05%, respectively, with net profits soaring by 264.89% and 94.08%.
Meanwhile, despite a decline in sales volume by 4.13% and 7.34%, JK Tyre and Apollo Tyres saw net profit increases of 169.01% and 63.33%, respectively.
Stock market experts suggest that, despite risks, these companies’ share prices may rise in the coming days. The advice is to buy during dips, but investors should avoid purchasing large amounts of shares at once.
(Invest wisely, this write up is an analysis of possibilities and enewstime is not responsible for any losses of investors)
