Tyre stocks facing challenges due to slowdown in commercial vehicles, auto segments: Amisha Vora

In a chat with ET Now, Amisha Vora, Joint MD, Prabhudas Lilladher, shares her views on CEAT and tyre stocks. Excerpts:

ET Now: What do you make of this franchise and if not Ceat, any other tyre stock that you like under your coverage?

Amisha Vora: So once again tyre stock is a classic story where because of huge slowdown in the both commercial vehicle, auto segments, is facing the challenges at the moment in terms of their top line growth and in terms of a bit on their gross contribution. That is because of some of the raw material prices. But if you see on a slightly broader basis, the industry is a very well consolidated industry and still in terms of their sales to market cap numbers are still very attractive. Also in terms of their price earnings ratios, the numbers are attractive and we are staring at a long turnaround in the fortunes of both commercial vehicle as well as passenger vehicle markets over next two to three years so that some of these corrections would be very good point. May not be just now, maybe a little more correction and it would be a good entry point for a medium to longer term period.