Realization on sales at Ceat Tyres was lower on account of lower rubber price and price cuts taken on various product categories in the past few quarters. There are a few reasons for the margin contraction. One, the moderation in rubber prices during the quarter could reflect in the profit and loss account with a lag. That’s why we had forecast lower profitability as the company would have to account for the high-cost rubber inventory of the previous quarter.
Trading Advices: Trader can Sold Ceat tyre at around 1305 targets 1290, 1275 Stop Loss 1321.