Tyre companies in India: list of 20 tyre stocks

A company appears if the exchanges place it under tyres and rubber products, which sits within the automobile and auto components sector. There is no cut-off on size, profit or return, so the list runs from the largest tyre makers to very small companies.

Market cap is the share price times the number of shares. P/E is market cap divided by the last twelve months' profit that belongs to the company's own shareholders. ROCE, return on capital employed, is operating profit after depreciation as a percentage of the money the business runs on, owners' funds plus borrowings. Lease liabilities are left out because results filings do not state them. Price changes are adjusted for splits and bonuses, without dividends.

Tyre makers sell in three channels: tyres fitted on new vehicles (original equipment), tyres bought to replace worn ones, and exports. Replacement demand follows the number of vehicles already on the road and how far they run, while original equipment demand follows new vehicle sales. Companies differ in mix: some focus on passenger cars and two-wheelers, others on trucks and buses, and some on tyres for farm, construction and mining machines.

A tyre is built from natural rubber, synthetic rubber, carbon black, steel cord and fabric. Synthetic rubber and carbon black are made from crude oil products, so oil prices feed into them, while natural rubber is a farm crop with its own price cycle. Profit margins can change from one quarter to the next as these costs move, even when volumes hold.