Auto cycle turned for best; cost pressures visible in Q4FY21: Kotak MF’s Harsha Upadhyaya

Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund

The auto cycle has turned for the best and we expect volume growth, said Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund on Friday.

“We believe the auto cycle has turned and the volume growth should continue, but the only caveat here is that there has been a raw material price increase last quarter, which was not visible in Q3," he said in an interaction with CNBC-TV18.

“However, going into Q4 we could see some of these costs showing up and also the advertising and promotion cost could increase a bit as the economy opens further,” said Upadhyaya.

He said Kotak MF continues to hold stocks in both ferrous and non-ferrous space.

“On the ferrous side we have larger overweight and that has worked well and some of our portfolio companies have also deleveraged quite a bit in the last 9-10 months,” Upadhyaya added.

Source: CNBC-TV18