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
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