While growth momentum has been strong, what has helped the company perform better than peers in the June quarter is its reliance on overseas markets
Good export demand, likely Q2 uptick, low interest rates are positive
The market has been quick to spot the opportunity. Over the past few sessions, tyre stocks have been on a roll with JK Tyre, Ceat, MRF logging smart gains at the bourses
The auto ancillary sector's revenue is expected to shrink 16-20% in the current financial year, with both domestic market as well as exports likely to see dip in demand, according to India Ratings
Besides the so-called technical factor, analyst also attribute the current rally to an attractive valuation, prompting investors to buy these stocks
The prevailing liquidity crunch, especially in the NBFC space, has had a serious impact on the automobile demand, which has also been under pressure due to the rise in insurance and fuel costs.
LG Balakrishnan, Jay Bharat Maruti, Harita Seating, Triton Valves,JBM Auto and ZF Steering were up 5%-19% on BSE.