Indian tyre stocks gain after CLSA starts coverage with bullish ratings

MRF

11/04/2025 09:04

** Analysts at CLSA initiate coverage on Indian tyre maker, Apollo Tyres APLO.NS, with "high conviction outperform" rating; MRF MRF.NS and CEAT CEAT.NS with "outperform"

** Sets TP on APLO, MRF, CEAT at 566 rupees, 128,599 rupees, and 3,493 rupees, respectively

** Shares of APLO, MRF, CEAT up 4.1%, 3%, 3.2%, respectively, amid broader market rally after U.S. President Donald Trump announced 90-day pause on reciprocal tariffs on Wednesday

** Indian tyre market, valued at $12 billion, moving up profitability curve with capacity addition focused on higher-margin passenger car radial tyres vs lower-margin truck and bus tyres - CLSA

** Says sector is at the bottom of margin cycle; gross margins to improve on softening commodity prices

** Sees the sector relatively insulated from impact of U.S. tariff implementation due to limited dependency on exports

 (Reporting by Ashish Chandra in Bengaluru)

 ((ashish.chandra@thomsonreuters.com (+91 7982114624))