Apollo Tyres a best bet in tyre sector: PN Vijay

PN Vijay, Portfolio Manager, www.askpnvijay.com says tyre stocks stand out among mid-caps and in that Apollo Tyres is a best bet.

Vijay told CNBC-TV18, “The tyre space will continue to perform extremely well for one of the reasons was what you said, which is the softening of the raw material prices and we should remember that the raw material prices constitutes a very high percentage of the cost of making a tyre.”
He further added, “The valuations are extremely attractive. If you have looked at the earning growth of say Apollo Tyres and the price earnings at which it is available, it is just unbelievable because many stocks are available cheap, but the earnings scenario is very crowded, but here one could say that in the tyre sector at least for the next 6 months in the front view mirror we are seeing a good traction in earnings. So even if they have all gone up a little bit, but I would say among the mid-cap sector and most of the stocks of mid-cap tyres stand out and in that my own favorite is Apollo Tyres.”