3 Top Tyre Stocks to Watch for Future Multibagger Potential: MRF, Apollo Tyres and CEAT
- October 16, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
MRF Rs 1,22,270. Apollo Tyres Rs 411.50. CEAT Rs 3,232.50. Market caps from Rs 13,045 crore to Rs 51,869 crore. Data as of 16 Oct 2026.
Quick Answer
MRF, Apollo Tyres and CEAT are the 3 picks in this tyre stocks watchlist, with market caps between Rs 13,045 crore and Rs 51,869 crore. MRF stands out for the largest market cap at Rs 51,869 crore, while Apollo Tyres offers the strongest latest-quarter profit growth at 2608.62%. PE ratios run from 15.38 to 25.31, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.
Tyre stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. MRF, Apollo Tyres and CEAT meet that test, with market caps from Rs 13,045 crore to Rs 51,869 crore and MRF offering the largest market cap at Rs 51,869 crore. Most tyre sales come from replacement demand, which keeps volumes steady whether or not new vehicle sales are strong.
This list covers listed tyre makers with complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening tyre stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Tyre Stocks and Why Do They Attract Multibagger Interest?
Tyre stocks are listed companies that make tyres for cars, trucks, two-wheelers and farm vehicles. A large share of sales comes from replacement tyres, so volumes grow with the number of vehicles already on the road and the distance they cover.
A growing vehicle base, better roads and a shift towards radial and premium tyres support volumes and pricing. Makers with strong brands, wide dealer networks and spare capacity are the ones investors compare in tyre stocks.
Tyre Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are as of 16 October 2026, mid-session. Apollo Tyres combines the lowest PE of the group, 15.38, with the highest return on equity, 12.39%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| MRF | 1,22,270 | 51,869 | 21.45 | 19.24 | 11.57% | 0.15 | 1,21,310.00 to 1,63,600.00 |
| Apollo Tyres | 411.50 | 26,277 | 15.38 | 19.24 | 12.39% | 0.22 | 365.30 to 540.50 |
| CEAT | 3,232.50 | 13,045 | 25.31 | 19.24 | 11.52% | 0.82 | 3,061.20 to 4,438.00 |
MRF: 37.98% Profit CAGR Since FY22
MRF makes tyres for cars, trucks, two-wheelers and farm vehicles and sells them under the MRF brand. It reported FY26 revenue of Rs 31,653.64 crore, up 10.79% year on year, and net profit of Rs 2,426.10 crore, up 29.51%. Net profit has compounded at 37.98% a year since FY22, while revenue has grown 12.68% a year. Operating margin was 17.18% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.
Revenue for the June 2026 quarter rose 10.33% to Rs 8,610.56 crore, at an operating margin of 14.09%. Domestic institutions raised their holding from 11.67% in June 2025 to 12.10% in June 2026. The stock trades at a PE of 21.45 against an industry PE of 19.24.
Apollo Tyres: 21.08% Profit CAGR Since FY22
Apollo Tyres makes tyres for passenger cars, trucks, farm vehicles and two-wheelers in India and Europe. It reported FY26 revenue of Rs 28,604.01 crore, up 9.13% year on year, and net profit of Rs 1,372.42 crore, up 22.39%. Net profit has compounded at 21.08% a year since FY22, while revenue has grown 7.94% a year. Operating margin was 15.05% in FY26. The debt-to-equity ratio is 0.22.
The stock trades at a PE of 15.38 against an industry PE of 19.24, below the sector average, with a return on equity of 12.39%. In the June 2026 quarter, revenue rose 13.32% to Rs 7,456.12 crore and net profit grew 2608.62% to Rs 348.87 crore. The share price has gained 69.69% over five years. Domestic institutions raised their holding from 27.53% in June 2025 to 29.04% in June 2026.
CEAT: 77.29% Profit CAGR Since FY22
CEAT, part of the RPG Group, makes tyres for two-wheelers, passenger vehicles, commercial vehicles and farm equipment. It reported FY26 revenue of Rs 15,718.38 crore, up 18.76% year on year, and net profit of Rs 697.24 crore, up 47.92%. Net profit has compounded at 77.29% a year since FY22, while revenue has grown 13.79% a year. Operating margin was 12.96% in FY26.
Revenue for the September 2026 quarter rose 26.21% to Rs 4,767 crore, at an operating margin of 9.43%. The share price has gained 137.45% over five years. Domestic institutions raised their holding from 21.05% in September 2025 to 23.26% in September 2026. The stock trades at a PE of 25.31 against an industry PE of 19.24.
Tyre Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these tyre stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| MRF | 31,653.64 | 2,426.10 | 10.79% | 12.68% | 37.98% | 14.09% |
| Apollo Tyres | 28,604.01 | 1,372.42 | 9.13% | 7.94% | 21.08% | 12.84% |
| CEAT | 15,718.38 | 697.24 | 18.76% | 13.79% | 77.29% | 9.43% |
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Institutional Holding in MRF, Apollo Tyres and CEAT
Institutional holding shows who is backing these tyre stocks alongside the promoter. The table uses the latest reported quarter for each. Apollo Tyres has the deepest institutional backing, with FII and DII together holding 39.12% as of June 2026. Domestic institutions increased their holding over the past year in MRF (from 11.67% to 12.10%), Apollo Tyres (from 27.53% to 29.04%) and CEAT (from 21.05% to 23.26%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| MRF | 27.77% | 17.42% | 12.10% | 42.71% | June 2026 |
| Apollo Tyres | 36.93% | 10.08% | 29.04% | 23.94% | June 2026 |
| CEAT | 47.29% | 13.41% | 23.26% | 16.04% | September 2026 |
Risks to Weigh in Tyre Stocks
Being careful with tyre stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Natural rubber, carbon black and crude-linked inputs make up a large part of tyre costs.
- Imports of low-priced tyres can affect pricing in some segments.
- Valuation: CEAT trades at a PE of 25.31 against an industry PE of 19.24, so earnings need to keep growing to support the price.
- Concentration: Holding all 3 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Tyre Stocks
Picking from tyre stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (19.24) and ask whether the growth rate justifies any gap.
- Track volume growth, the replacement-to-original-equipment mix and the operating margin each quarter.
- Stagger entries across quarters and review institutional holding every reporting season.
Download the Univest iOS App or Univest Android App to track MRF, Apollo Tyres and CEAT live prices.
Conclusion
Among tyre stocks, MRF stands out for the largest market cap at Rs 51,869 crore, Apollo Tyres for the strongest latest-quarter profit growth at 2608.62% and CEAT for the fastest profit growth, 77.29% a year since FY22. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing tyre stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Tyre Stocks to Watch
Which are the best tyre stocks to watch for multibagger potential?
Ans. MRF, Apollo Tyres and CEAT are the 3 names this list highlights, with market caps of Rs 51,869 crore, Rs 26,277 crore and Rs 13,045 crore respectively. MRF is notable for the largest market cap at Rs 51,869 crore. Apollo Tyres stands out for the strongest latest-quarter profit growth at 2608.62%. CEAT offers the fastest profit growth, 77.29% a year since FY22. These are watchlist names for tyre stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Apollo Tyres a good stock for long-term investors?
Ans. Apollo Tyres has a return on equity of 12.39%, a PE of 15.38 against an industry PE of 19.24 and a market cap of Rs 26,277 crore. Net profit has compounded at 21.08% a year since FY22, and FY26 revenue rose 9.13% while June 2026 quarter net profit grew 2608.62%. Long-term returns in tyre stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can CEAT become a multibagger from here?
Ans. CEAT has already gained 137.45% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in tyre stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 77.29% a year since FY22, and FY26 revenue rose 18.76%. At a PE of 25.31 against an industry PE of 19.24, valuation should be checked against that growth before investing.
What is the market cap of MRF, Apollo Tyres and CEAT?
Ans. As of 16 October 2026, MRF has a market cap of Rs 51,869 crore, Apollo Tyres has a market cap of Rs 26,277 crore and CEAT has a market cap of Rs 13,045 crore. MRF is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on tyre stocks.
What are the risks of investing in tyre stocks?
Ans. The main risks are raw material costs, competition from imports and vehicle demand. Rubber and crude derivative prices influence margins, and price cuts by rivals can affect sales. Strong brands and wide dealer reach help tyre makers hold margins. CEAT trades at a PE of 25.31 against an industry PE of 19.24, so earnings growth needs to hold up.
Why is CEAT trading at a PE of 25.31?
Ans. CEAT’s PE of 25.31 compares with an industry PE of 19.24. The market is paying a premium for profit growth of 77.29% a year since FY22 and FY26 revenue growth of 18.76%, which also means the stock is more sensitive if growth slows. Investors in tyre stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in MRF, Apollo Tyres and CEAT?
Ans. As of the latest reported quarter, FII and DII together hold 29.52% of MRF (17.42% and 12.10%), 39.12% of Apollo Tyres (10.08% and 29.04%) and 36.67% of CEAT (13.41% and 23.26%). Rising institutional holding is a useful signal in tyre stocks, though it should be read with earnings trends rather than on its own.
