FUNDAMENTAL AND TECHNICAL ANALYSIS OF MRF TYRES LTD & APOLLO TYRES LTD (KEY IJP************574)

• Dr V Muthukumar, S Hariharan

Abstract

This research paper explores the intricacies of the Indian tire industry, emphasizing its notable growth fueled by rising automobile demand and increasing income levels. The study centers on two key players, MRF Tyres and Apollo Tyres, employing both fundamental and technical analysis methods. The fundamental analysis, which involves examining financial ratios, indicates that Apollo Tyres demonstrates superior financial performance relative to MRF Tyres, positioning it as a more appealing investment choice. The industry analysis is contextualized through Porters Five Forces Model, which highlights the challenges faced by new entrants due to intense competition, significant supplier influence in specific areas, and the threat of substitutes. Nevertheless, the model also points to opportunities within the Indian market, attributed to lower production costs and the availability of affordable labor. The paper also explores technical analysis, emphasizing the significance of moving averages in detecting market trends and informing investment strategies. By smoothing out price fluctuations, moving averages provide traders with a clearer perspective on market behavior and help establish crucial support and resistance levels.