Bullish on tyre cos; see rubber prices falling to Rs 150/kg: Anand Rathi

Name: Bullish on tyre cos; see rubber prices falling to Rs 150/kg: Anand Rathi
Uploaded: 2017-03-16T13:47:39+05:30
Description: Speaking to CNBC-TV18, Milak said though the decline in Chinese dumping along with fall in rubber will give a significant advantage for Indian companies, he cautioned that unless and until these factors sustain for a longer period of time rubber companies will fail to benefit significantly as the inventory carried by them is of around 40-45 days.

Speaking to CNBC-TV18, Milak said though the decline in Chinese dumping along with fall in rubber will give a significant advantage for Indian companies, he cautioned that unless and until these factors sustain for a longer period of time rubber companies will fail to benefit significantly as the inventory carried by them is of around 40-45 days.

March 17, 2017 / 13:18 IST

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.

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first published: Mar 16, 2017 01:47 pm

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