In our way to find new counters with future winning capability, I think TYRE should be a good counter to follow.
TYRE industry is a highly capital intensive industry with certain entry barriers.
KELANI TYRE is enjoying the local monopoly in local business with tax consession from almost all budgets by way of import taxes on competitive import products.
With year to year steady growth, they have been reinvedting lot for expansions and new product developments.
Reducing raw material cost could be key factor for profitsbility , specially with continous decline in rubber price.
Other than the local business , they are into export and private labling. With formation of joint venture with CEAT INDIA they have gained the techology know how and also the CEAT brand.
I feel this is neglected and less crowded share with strong fundamentals and future earning capability.
Think this is a good medium term investment !!!
Good luck !!!