Prefer Ceat for long term: Gaurang Shah

Gaurang Shah of Geojit Financial Services told CNBC-TV18, "We had a positive coverage a while back on Balkrishna Industries but since our targets have reached at the current valuations where the stock is trading, we have advised a reduce, sell or profit booking on Balkrishna Industries. So prudent to possibly move your investment; if you want to stay invested in tyre sector itself, then our view is that from a long term point of view at current valuations Ceat would be a preferred pick. Not that we are negative on other tyre manufacturing companies, but since our targets are in place, I think prudent to maybe switch over to Ceat in the auto ancillary/tyre manufacturing."

At 15:23 hrs Ceat was quoting at Rs 1,573.95, down Rs 6.65, or 0.42 percent.

The share touched its 52-week high Rs 2,030 and 52-week low Rs 1,136.25 on 10 January, 2018 and 03 March, 2017, respectively.

Currently, it is trading 22.47 percent below its 52-week high and 38.52 percent above its 52-week low.