<ul><li>India's tyre industry is turning the corner into a sweet spot driven by rising pricing discipline, product quality, and mix, according to CLSA.</li><li>CLSA has initiated coverage on MRF Ltd. with a target of 1,28,599, Apollo Tyres Ltd. at a target price of Rs 566, and CEAT Ltd. with a target of Rs 3,493, all with 'outperform' ratings.</li><li>The sector is expected to see a rebound in the margin cycle, as key raw material costs cool off by 10-20% and a shift in focus towards higher-margin passenger car radials is observed.</li><li>Valuations in the industry are more sensitive to profitability and capex discipline than revenue growth, and the largely domestic nature of the industry shields it from global volatility and US tariff tremors.</li></ul>

India's Tyre Industry To Regain Grip, Says CLSA Initiating Coverage

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