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.
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.
![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?resize=120%2C86&ssl=1)
