CEAT LTD

Fundamentally I don't like any such stock like Ceat, Apollo etc because all are pretty much in the same line of business with nothing very unique about each of them. MRF is in different league but then it is a stock one should buy in declines and not otherwise.

Technically can you share what pattern you are looking at?

 

Let me try to explain things in perspective first. Each of the tyre manufacturer is a yet another tyre player in the segment with some niche speciality for each of those players based on GEO or segment that they operate in. Again this isn't a distinctive advantage unless there is a clear entry barrier for others.

MRF on the other hand is a low cost producer because they have been able to re-invent themselves to cost cutting measures as well as efforts on the marketing front. You will see every Indian batsmen's bat has MRF as label.

So once you have such a competitive player, it needs lot of courage in the me too kind of business to beat it.

So no matter what other investors and fund does, you shouldn't be investing in them unless you understand the rationale and the growth points that can drive the business into higher profitability orbit. Those funds may be investing because they may have to due to diversification in various sectors and market cap based limitations but you don't have to comply to them and so you have to consider the business aspect to it.