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    Ceat fairly priced at the current levels: Nitin Raheja

    Synopsis

    Now people will look at actual incremental volume numbers or volume driven growth to drive the stock further.

    In a chat with ET Now, Nitin Raheja, CIO, AQF Advisors, shares his views on ceat.

    ET Now: What did the trick for Ceat initially, was a sharp drop in rubber prices but that thesis is no longer applicable, rubber prices have inched up, carbon black prices have gone up, the replacement demand is still sluggish but the stock refuses to come down.

    Nitin Raheja: What you are seeing in Ceat is actually what you have seen in a lot of stocks across the sector where you had huge under valuation which was on the extreme. When you saw the large base of the turnover and when you start seeing margin starting to play an upside, even a 1% change in margin on the increment makes a big impact. So, in our view it is fairly priced at this moment at least in the shorter term. Now people will look at actual incremental volume numbers or volume driven growth to drive the stock further.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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