InvestorQ : Why have tyre stocks like Apollo Tyres and Ceat been doing so well in the markets of late?
vidhya Laxmi made post

Why have tyre stocks like Apollo Tyres and Ceat been doing so well in the markets of late?

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sarah Leo answered.
3 weeks ago
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Tyre stocks have been in the midst of smart rally on they rallied by another 8% on Tuesday. Most of the tyre stocks ended the day close to their 52-week highs. The rally was driven by the expectations of strong demand and margin expansion over the next few quarters. Apollo Tyres and Ceat touched their yearly highs during the week.

Tyre industry growth in FY22 was an outcome of increase in volumes. Needless to say, margins have been under pressure due to prices of key inputs like natural rubber and crude derivatives going up sharply due to supply chain constraints. Tyres are likely to see robust demand from OEM and replacement segments with auto exports and tyre exports likely to be a big game changer for tyre companies.

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