Expect upside potential from current levels for Apollo Tyres: Quantum Securities

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his views on the tyre space. Excerpt:

ET Now: Do you think Apollo Tyres is a good tactical buy among tyre space?

Neeraj Deewan: I had been recommending Apollo Tyres at Rs 70-72 levels. We continue to hold it as there is some potential on the upside. The stock can still show momentum and cross levels of Rs 100.

However, due to the kind of deal, there will be that overhang on people’s mind; they will be looking at something like that. Though, it will not get that kind of valuation that some other tyres stocks would have got but there is still upside potential from these levels.

With the kind of rubber prices coming down, the profitability will be there in the core business.