Tyre stocks soared on Thursday backed by falling rubber prices and significant drop in dumping of Chinese tyres.
Sharing his outlook on the sector with CNBC-TV18, Mayur Milak, Research Analyst - Institutional Equity at Anand Rathi said Indian tyre companies will benefit significantly. However, he cautioned rubber companies could fail to benefit unless these factors sustain for a longer period of time considering the inventory carried by them is of around 40-45 days.
Milak sees rubber prices falling to levels of Rs 150/kg and companies sustaining margins they have been reporting for the last two quarters. He has a buy rating on Apollo Tyres and likes JK Tyre & Industries Limited, MRF Limited and Ceat Limited.