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BUZZ-Growth recovery to drive India's tyre sector re-rating - Deutsche Bank
September 22, 2017 / 6:48 AM / in a month

BUZZ-Growth recovery to drive India's tyre sector re-rating - Deutsche Bank

** Deutsche Bank starts coverage on MRF Ltd and Ceat Ltd with “buy” rating and PT of 80,000 rupees and 2,150 rupees respectively, citing revival in volume growth and margins

** India truck tyre demand should recover to 8 pct p.a. in FY17-20 vs. 1 pct p.a. in FY14-17 - Deutsche Bank analysts

** Brokerage sees EBITDA margins in sector improving by 600 - 1,100 bps from current depressed levels, driven by lower raw material prices, favourable anti-dumping duty on Chinese tyres

** Brokerage maintains its “buy” recommendation on Apollo Tyres Ltd, but raises PT by 18 pct to 325 rupees

** Apollo, on which 17 out of 21 brokerages have a “buy” or higher rating, was up 2 pct in a weak market which was more than 1 pct down

** MRF, one of India’s most expensive stocks, rose as much as 1 pct to 64,000 rupees. The stock is up about 45 pct in one year

** Ceat gained 1.8 pct at 1,773.8 rupees, snapping 3 straight sessions of losses

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