Expect rerating on stock if CEAT maintains run rate of Rs 65-70 crore per quarter: Avinnash Gorakssakar, Miintdirect.com

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on CEAT:

ET Now: What is your call on CEAT?

Avinnash Gorakssakar: CEAT has come out with the numbers that are exactly similar to the ones that came out in the first quarter; the profitability has shot up significantly.

CEAT has taken the benefit of being a large player in the replacement market—they have been made good inrods in terms of increasing their market share and especially enhancing their margins there.

The replacement market offers a better margin mix for the company; more importantly, we would look forward to the conference call on Monday. However, my guess is even if they maintain the run rate of Rs 65-70 crore every quarter, some rerating on the stock looks possible.