BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Indian tyre industry has been facing challenges across three core drivers of free-cash-flow generation – volume growth, profitability and capex – in FY22. As a result, tyre stocks have corrected ~30% in the past 12 months and also been de-rated duly on our FY24E earnings.
We expect both passenger vehicles and two-wheelers to grow by ~12% each compound annual growth rate in FY22-FY24E, post remaining subdued in FY20-FY22E led by continued total cost of ownership inflation, other than continuation of the commercial vehicle cycle revival.
With raw material basket cost shooting up from surge in crude oil prices, gross profit/kg, which is already below 10-year mean levels, is expected to go down further in next couple of quarters.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
