Hold MRF, advises Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "If you go by the sales data of MRF, the numbers have held up pretty well. But the flip argument now become with input costs rising up and you might have some amount of compression happening on the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins front not just for MRF but for a whole host of the tyre companies.""The entire story is going to be how the replacement demand probably shapes up for these companies and if one really assumes both on the passenger vehicle (PV) side as well as the commercial vehicle (CV) and the two wheeler side, the volume growth to stay afloat and probably grow to a very decent clip of 8-10 percent across these industries. The tyre makers volume growth should be quite reasonable as well," he said."So, one really must expect the EBITDA margins probably to be quite sustained at these levels that they have probably maintained or even come down a tad bit but that will probably get offset with the volumes and the realisations that they are probably doing specifically on the replacement front. So, anybody holding on to MRF definitely should hold on to the stock," he added.