Global investment firm Deutsche Bank is bullish on three tyre stocks amid continued volume growth across companies and price hikes taken to counter commodity cost pressures.
“Apollo Tyres remains out top pick, and we remain constructive on MRFand Ceat,” Deutsche said.
It expects FY18-21 EPS compounded annual growth rate (CAGR) of 16-26 percent.
The research house has maintained buy call on Apollo Tyres, MRF as well as Ceat.
It expects Apollo Tyres to hit a target price of Rs 300 (implying a potential upside of 32.6 percent from the last regular trade) over a period of one year.
Deutsche set a target of Rs 80,000 for MRF, which implies a potential upside of 21 percent and Rs 1,570 for Ceat, implying a potential upside of 25.4 percent from the last regular trade.