Enter Hindalco Industries, says Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "We are seeing a cyclical upswing in aluminium and Hindalco Industries is benefitting from that. But if you see the past track record of commodities in terms of delivering returns to shareholders, that has been quite abysmal. So, I think it is a good time for traders to get into Hindalco and some of the other metal stocks. There is a clear trend formation over there.""From long-term investors point of view, these stocks still need to be avoided and you are better off in the consumer of aluminium or other commodities for that matter," he added."With usual disclosure that we have investments in several auto companies – two wheelers and four wheelers – the best pick in the pack still remains Maruti. I know it has got a lot of issues in terms of royalty payment and movement of yen, but those have been historically present for the company in the past and yet it has shown secular growth over the past several years or so.""Despite every single major automobile company, global automobile company operating in India, they maintain the kind of market share which they have is really quite impressive. New models have done exceedingly well for them and they have some amount of pricing power as well to pass on cost increases. So that will be the best pick within the auto industry." "Then there is of course Eicher Motors also which has come off from the highs significantly and there have been some disappointment with regards to promoters selling the shares, but one should not read too much into it. The underlying growth remains pretty strong and if the exports strategy works out, then that could be a new growth engine for the company. So, these two are our top picks and looking forward to Tata Motors numbers, which are still awaited that could be quite interesting as well.""Bharat Heavy Electricals (BHEL) is well past its prime. There was a time when they had monopoly in the Indian industry as far as power generating equipment was concerned and now there is intense competition. A lot of investments within the electricity sector has shifted to solar as well as wind and very few power plants projected to come up and there are various issues with financing, power purchase agreement as well (PPA). So, my sense is that generating equipment companies like BHEL will continue to underperform.""But per se if you look at this earnings season, the bright spot has been the electrical equipment companies, the likes of ABB and Siemens, even the transmission companies like KEC International, Kalpataru Power and Apar Industries also which is into conductor have all done exceedingly well. So, clearly, the focus on the power industry is shifting from generation to transmission and that is where investors should focus on."