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PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Among the engineering stocks, we have been extremely bullish on PSU defence engineering companies. Our view was backed by attractive valuations, high entry barriers, cash in books, strong balance sheet and robust order book, providing enough revenue visibility for the next 3-4 years. Moreover, these stocks were trading at about 8-10 times one-year forward earnings, at a significant discount to their private sector peers, which were quoting 60-70 times. Even though in the backdrop of the recent rally, these stocks have...