Bullish on tyre cos; see rubber prices falling to Rs 150/kg: Anand Rathi

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Speaking to CNBC-TV18, Milak said though the decline in Chinese dumping along with fall in will give a significant advantage for Indian companies, he cautioned that unless and until these factors sustain for a longer period of time will fail to benefit significantly as the inventory carried by them is of around 40-45 days.

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Tyre stocks soared on Thursday backed by falling and significant drop in dumping of Chinese .
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 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.

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