Tyre stocks trade in green; JK Tyre zooms 7.6%

The brokerage house also said that JK Tyre’s stock price can potentially double over the next three years.

Among other tyre stocks, shares of Ceat Ltd gained as much as 3% on Wednesday to hit an intra-day high of Rs 2,148.85 on BSE. MRF Ltd rose 0.8% to Rs 1,08,099 apiece, while Apollo Tyres shares were up 0.5% to Rs 377.45.

Crude oil prices fell in Tuesday’s session on easing concerns over supply disruption due to geopolitical tensions. Brent crude settled down 50 cents, or 0.57%, at $87.65 per barrel, while US West Texas Intermediate (WTI) crude fell 41 cents to $85.97 per barrel. To recall, both Brent crude and WTI had jumped over $3.5 on Monday.

In September, CNBC-TV18 reported that the tyre manufacturing industry has witnessed a decline in stock values ranging 2-8% during the month. The downturn was primarily attributed to the upward trajectory of commodity prices and a reduction in demand from original equipment manufacturers (OEMs).

Kotak Equities had adopted a cautious stance towards tyre manufacturers, expressing the belief that maintaining price increases without adversely affecting demand might pose a challenge.