"Despite strong January-March quarter (Q4FY23) performance by paint and tyre companies, we believe that the positives are already priced-in, and foresee a near-term correction due to premium valuations. While the average valuation of paint companies stands around 55 times (x) trailing twelve months, tyre-makers trade at an average of 33x trailing twelve-month period," said AK Prabhakar, head of research, IDBI Capital. By comparison, average valuation, historically, has been below 36x for paints, and below 12x for tyres.