Larger domestic-focused tyre companies have underperformed the benchmarks in the past three months, but exporter Balkrishna Industries has bucked the trend.
The company, which exports off-highway tyres, has generated 43 per cent returns compared to MRF and Apollo Tyres, which are down 5-10 per cent.
In addition to better than expected performance in the March quarter, exports and market share gains have helped Balkrishna pull ahead of peers.
Rishi Vora and Praveen Poreddy, analysts at Kotak Institutional Equities, said MRF, Ceat, and Apollo Tyres had a weak quarter due to weak demand for tyre replacements in the commercial vehicle segment and obligations for extended producer responsibility (EPR).
The second makes manufacturers responsible for the environmental impact of the products from initial production to the efficient disposal of tyres.
Apollo and Ceat have announced price hikes to offset the obligations for EPR as well as raw material costs. MRF has not announced any hike.
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