Tyre stocks in focus; MRF hits record high, up over 3%

Shares of tyre manufacturer were in focus in otherwise subdued market with MRF hitting new high of Rs 75,474, up 3.3% on the BSE on Tuesday. The tyre major has surpassed its previous high of Rs 74,499 recorded in December 26, 2017.

Among other tyre stocks, Ceat and Apollo Tyres were up 3%, TVS Srichakra, JK Tyre & Industries, Goodyear India, Govind Rubber and Balkrishna Industries up in the range of 1% to 2% on the BSE. On comparison, the S&P BSE Sensex was trading 0.04% lower at 33,241 points at 10:27 am.


Since February 2018, MRF has outperformed the market by gaining 10% after the company reported better than expected EBITDA margins at 18.5%, up 160 bps QoQ and 70 bps YoY, for the third quarter ended December 2017. The Sensex was down 7.5% during the same period.

Analyst at Anand Rathi Share and Stock Brokers has ‘buy’ rating on MRF with a target price of Rs 80,045 as the brokerage firm expects better revenue growth and stable rubber prices augur well for MRF’s margin expansion in coming quarters.