Small midcap off-road tyre stocks like BKT a good prospect: Altamount Capital

In an interview with ET Now, Prakash Diwan, Director, Altamount Capital Management shares his views on the tyre space. Excerpts:

ET Now: One word on CEAT: blockbuster numbers. What is your view on CEAT?

Prakash Diwan: If you have bought into tyre stocks, you continue holding on, be it Apollo, CEAT or even MRF to that an extent. However, if somebody is going to look at buying a fresh, my sense is to look at something like BKT which is one of those best plays in terms off-road segment. What I would expect is that given the kind of slowdown that we have had, there is very little fresh buying of infrastructure related transport logistics vehicles.

That means there is going to be a huge appetite for the second-hand or the pre-owned kind of vehicles in that space. Most of these thrive on off-road businesses, off-road activities and that is where BKT could start getting some sort of value. CEAT is definitely good, but I would point out BKT as one of those small midcap players in the tyre space which could be very promising going forward.