See fatigue in tyre pack; time to move out: Prakash Diwan

In an interview with ET Now, Prakash Diwan, Director, Altamount Capital, shares his views on tyre stocks.

ET Now: What about tyre stocks? If you look at the F&O data, it seems like next series (August) they are going to be the high flyers?

Prakash Diwan: It is always good to move out, before the peak. I do not mind missing out on the next 8-10 per cent of an upside. But yes, there is clear fatigue in the tyre pack. We have already started sensing that. The companies which supply to commercial vehicles might do well, but otherwise it is getting difficult to export as well. Balkrishna Industries is already hurting. JK is the only one, which because of cost efficiency, is doing well. Otherwise, Apollo is already moving sideways. It has disappeared from the radar after its June quarter numbers. I am sure that one would not want to buy expensive stocks of MRF and Ceat.

ET Now: But the June quarter numbers were not that bad numbers.

Prakash Diwan: But whether they can continue to throw up similar numbers and whether the growth is peaked out or is peaking out if not petered, could be seen in ...