Apollo Tyres looks good from an investment perspective: Satish Betadpur

Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC in an interview with ET Now talks about Apollo Tyres, IOB and Syndicate Bank.

Apollo Tyres, IOB and Syndicate Bank, what are your key reasons as to why you would choose these particular stocks and target levels over the next few months?

We like Apollo because of the strong OEM sales and also strong secondary sales and in the domestic market, their valuations are reasonably attractive. We are expecting rubber prices to come down from current high levels. So that will improve margins.

They have also had a huge capacity expansion around the globe and lately the Chennai plant also came on stream so they have very strong revenue expansions in the horizon and that will translate into good earnings going forward. So I think from an investment perspective Apollo Tyres looks good to get to Rs90 a share in the near term. On the banks overall we like banks because of the credit cycle that we are in. Within that we like both IOB and Syndicate. We talked a little bit about IOB a little while ago. On Syndicate Bank again price to book is very attractive level. NPA levels are relatively under control and growth on the horizon so that’s again a value pick for at in the banking side.