Buy Apollo Tyres, says Rajesh Jain

Buy Apollo Tyres, says Rajesh Jain, Market Strategist

Jain told CNBC-TV18, "Apollo Tyres is a derived demand play on the huge auto sales seen in the auto boom over the last three years. Replacement of tyres is likely to see a huge volume push. Apollo has invested into 2 capacities and will reap the volume growth arising out of that both in India and abroad. It has also successfully launched Radial Tyres, the company has seen the impact of higher rubber prices but margin expansion is now due to happen as both rubber prices are getting mitigated and the company has taken successfully price hikes. I would buy Apollo Tyres for an intraday target of Rs 89.