Tyre Stocks

I was surfing and came across a tweet, which is given below.



Recently we saw rally in all tyre stocks and MRF hit the landmark 50K milestone. 7th pay commission and good monsoon will boost auto sector and hence indirectly boost auto ancillary and tyre companies. Which tyre stock looks promising with attractive valuation for medium to long term?

Why tyre stocks are a good bet right now
Will tyre stocks continue to enjoy the joy ride?
Is There Scope For Further Upside In Tyre Stocks?
TVS Srichakra hits new high; zooms over 60% in one-month

 

In my Twitter "Rama Murthy Sastry " i posted on sept 28 th

" My Multi Baggier stock choice are " Allembic Pharma , CEAT Tyre ,GMDC " for Long Term Investment "

 

Tyre stock has problem of rubber price increase. If rubber price increases raw material costs go up and profit will come down.

At present rubber prices are down and so stocks are up.

Tyre stocks up on fall in rubber prices
Business Standard-19-Sep-2016
Trading currently at Rs 12,014.25 a quintal in the domestic market, natural rubber price has hit the lowest in five months following global trends.

But if trend reverse, stock will reverse.

Better to look at auto ancillary stocks like LG Balkrishna, Fiem, Oriental Carbon, Lumax, Suprajit/ Phoenix Lamps These stocks will benefit by auto boom and free of commodity price fluctuation IMHO.

 

in my thread i posted about "Apollo Tyre ".... in " Future Multibagger company Analysis " thread on sept 10 th ...and i purchased around Rs. 160 levels and recently i booked profit completely .... and i am holding "Ceat Tyre " for Long Term

 

Interesting graph put up.

In a post of 22nd October 2015 one @Sachin pathak had recommended TVS and Balkrishna. Bulls eye for him as both his names are in the top quadrant.

https://rakesh-jhunjhunwala.in/forum/threads/tyre-sector-leaders-the-future-prospects.1064/