BurnellGreen - China Automobile Expert-CNAUTO

It’s Eastern time. Angel Broking PMS Fund Manager P Phani Sekhar is on ET. In the interview, Now shares his views on the tire industry. ET Now: do you think they have gone up that much considering whether there is significant upside in the tire group? P Phani Sekhar: Even if there is no advantage in raw materials, the tire industry is at its lowest point in the last 5-6 years, so tire inventories are at their best. Sentiment of tire companies has improved due to prospects of recovery in OEM sales. Another important component of the commodity complex is the sharp decline in crude oil prices, so it will significantly improve margins and is expected to improve profits over the next two years. Many of the companies were founded during a difficult period for production capacity. So they had a tough time from 2010 through 2013. As they were in the midst of capital spending programs, the rubber hit record highs every week and many stocks took a beating, but now the situatio...

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Expect further rally in tyre space from curent levels: P Phani Sekhar