Ideas for Profit | Wabco & Bosch: Long term buys amid a sluggish demand outlook
June 20, 2019 / 11:44 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Leaders in the auto ancillary space have been facing tough times due to multiple challenges in the domestic auto industry, which has led to a sharp correction in their stock prices. Two such companies with strong fundamentals and good long-term prospects are Wabco India (Wabco) and Bosch.
Both of these are sound portfolio candidates, primarily due to their leadership positions in the respective markets and positive long-term end-market outlook. We advise investors to accumulate these companies amid the current challenges.