Apollo Tyres vs CEAT: Which Tyre Maker Should You Pick After Stellar Q4 Earnings?

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The Indian tyre industry has seen impressive growth in recent years, and Apollo Tyres and CEAT are two of the major players in this space.  Both companies have reported strong Q4 earnings, but which one should investors choose? In this post, we'll compare the market position, financial performance, and growth potential of Apollo Tyres and CEAT to help you make an informed investment decision.

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Comparison of Apollo Tyres and CEAT:

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• Apollo Tyres is the second-largest tyre manufacturer in India with a market share of 27% • CEAT is the fourth-largest tyre manufacturer in India with a market share of 16% • Apollo Tyres has a larger global footprint with operations in Europe, Africa, and the Americas • CEAT has a strong presence in the replacement market and has been expanding its OE presence

Financial Performance:

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• Apollo Tyres reported a consolidated revenue of ₹5,223 crore for Q4, a YoY growth of 55.7%. • CEAT reported a consolidated revenue of ₹2,448 crore for Q4, a YoY growth of 72.5%. • Apollo Tyres reported a net profit of ₹289 crore for Q4, a YoY growth of 291%. • CEAT reported a net profit of ₹166 crore for Q4, a YoY growth of 330%.

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The Expert's Opinion

" With the price correction in crude and rubber, the margin of tyres companies have expanded significantly. We chose CEAT over Apollo because its product portfolio is diversified among truck/bus, 2-wheeler/3-wheeler (2W/3W), passenger vehicles, off-highway and light commercial vehicles. CEAT is also a dominant player in 2W/3W tyre with around 30% market share and more than 50% market share in 2W/3W Electronic Vehicle tyres. - Arvind Kothari, Founder, Niveshaay

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