MRF excels in premium-quality tyres, dominating the domestic market with a strong reputation and focus on innovation for diverse applications. Apollo Tyres stands out for its global reach and balanced offerings across passenger, truck, and motorcycle segments, making it a versatile choice.
Balkrishna Industries (BKT), on the other hand, carves a niche in specialised off-highway tyres for agriculture, construction, and industrial sectors, supported by strong export-driven growth. The key differences lie in their market focus—MRF leads in domestic premium, Apollo thrives in global diversity, and BKT shines in specialised tyres for demanding environments.
These top three tyre manufacturers have a combined market share of approximately 60% in terms of revenue.
Share price movement
Over the past month, MRF’s stock price increased by 7.63%, Apollo Tyres rose by 13.26%, and Balkrishna Industries saw a 2.78% increase. The market sentiment seems positive, particularly for Apollo Tyres, which has shown the most substantial gain.
Market Share
MRF holds the largest market share in India at 30%, establishing its dominance in the tyre industry. Apollo Tyres follows with an 18% share, indicating its strong presence both domestically and globally. Balkrishna Industries (BKT) has a smaller market share of 6%, focusing primarily on specialised off-highway tires. This variation in market share reflects their different strategic focuses within the Indian market.
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Financial Analysis
MRF Limited, Apollo Tyres, and Balkrishna Industries present distinct financial profiles in the tire manufacturing sector.
MRF, with the highest revenue of ₹25,169 crores in March 2023, also leads in profitability with a net profit of ₹2,081 crores and an EPS of ₹4,907.26. For March 2024 show slight revenue growth to ₹25,565 crores, a net profit increase to ₹2,387 crores, and EPS rising to ₹5,617.50. The revenue growth from 2023 to 2024 is approximately 1.57%, indicating solid financial stability and shareholder returns. MRF has a CAGR sales growth of 9% and a profit growth rate of 12% over the last five years, reflecting strong financial health.
Apollo Tyres follows with a revenue of ₹24,568 crores in March 2023, netting ₹1,046 crores in profit and an EPS of ₹16.47. The company has grown its revenue to ₹25,378 crores and net profit to ₹1,722 crores in March 2024, with EPS rising to ₹27.11. The revenue growth from 2023 to 2024 is about 3.31%, reflecting effective cost management and operational efficiency. Apollo Tyres shows a higher CAGR profit growth of 16% over five years.
Balkrishna Industries, with a revenue of ₹9,760 crores and a net profit of ₹1,057 crores in March 2023, has faced a slight decline in revenue to ₹9,369 crores but sees profit growth to ₹1,471 crore by March 2024. The EPS has increased from ₹54.7 ₹54.7 to ₹76.12. The revenue growth from 2023 to 2024 is approximately -3.99%, but the profit growth of 39% suggests a strong expansion potential and a solid competitive edge in the market. Balkrishna Industries has the highest CAGR sales growth of 12% and a profit growth rate of 14%, indicating robust expansion potential.
Conclusion
MRF excels in premium-quality tyres, leading the domestic market with a focus on innovation. Apollo Tyres stands out globally with a balanced product range, while Balkrishna Industries specialises in off-highway tyres, particularly for agriculture and industrial sectors. Each brand excels in different areas, contributing to their distinct market positions.
Written By Fazal Ul Vahab C H
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