Inherent growth seen in the tyre sector: Gurunath Mudlapur

Gurunath Mudlapur, Director, Atherstone Capital Markets Ltd. in an interview with Et Now talks about tyre sector stocks.

Should one take a play on these tyre companies like an Apollo Tyres and which one is your favourite amongst the pack?

Amongst the 3 companies which you are mentioning Apollo Tyres would be the favourite for us to look at as an investor. The sector per se is now going to have a huge surge in terms of demand and the entire segment there is a commercial and the automobile segment is growing at a rapid pace and that expectation of rapid growth is going to keep driving the growth for this sector.

That is the reason where there is a lot of confidence that this sector should continue to do well and companies in this sector will stand to benefit and even at this stage the companies are in a position right now to pass on even the input price rises to the customers because there is a huge demand there so from that perspective I think it also shows that this inherent growth strength in the sector.