Voltas a market-performer, says Amar Ambani

Voltas is a market-performer, says Amar Ambani, Head-Research, IIFL.

Ambani told CNBC-TV18, “Voltas also has multiple segments, some segments are doing well and kind of beating that some of these stocks have got you could see the odd day or the odd month where you have these stocks going up. On Voltas, we have a market-performer (MP) rating and we think that some part of the consumer businesses will do well, but the infrastructure side will not do too well. So, we are not too positive on Voltas either, but we don’t have a sell there, we have more like an MP rating.”
He further added, “Overall Maruti Suzuki numbers aren’t too bad, but Maruti is regaining lost ground since things stabilised that - the labour problems that they had at their plants. So, numbers aren’t too bad, but obviously a move towards diesel vehicles and also intensifying competition in the passenger car vehicles means that Maruti has to deal with a lot of these problems, but the one good part is that Maruti has kind of debottlenecked or rebalanced it’s Suzuki engine plant and I think they are expecting- if I remember the number correctly 3 lakh or so kind of diesel engines to come out from that plant over a period of time. So, I think Maruti is kind of building a pipeline to increase it’s presence on the diesel side as well, which will help.”
“Currently of course there is a sentimental impact on the stock and even going forward we will see people moving towards diesel cars, but I think slowly and steadily Maruti could kind of regain lost ground after the labour problems and also getting more into diesel, but within the auto pack currently our top picks stays Mahindra & Mahindra and Tata Motors because they are more on the rural side, more on the utility vehicle side as Mahindra & Mahindra is concerned and on the Tata Motor’s front too it is in the domestic segment more into diesel and also JLR has been doing pretty well abroad.”