In an interview to CNBC-TV18, Awanish Chandra, Analyst-Auto & Auto Ancillaries at Centrum Broking shared his reading and outlook on the May auto sales numbers as well as on few auto stocks.
He prefers Maruti Suzuki India and Tata Motors among large cap stocks. “Last two-three years Maruti Suzuki has been outperforming the whole private vehicles (PV) pack, we think that momentum will continue. Though the numbers were slightly below estimate, 15 percent growth is good”, he said.
He thinks the company is well poised to post double digit growth numbers in FY18.
He expects Tata Motors to continue to do well on the back of good Jaguar-Land Rover (JLR) story.
People are looking for midcap companies like Swaraj Engines, FIEM Industries as far as investment in the auto sector is concerned, he added.
Speaking about tractor segment, he said, “We are very bullish on Swaraj Engines. Our target price remains around Rs 2,200”.
For full interview, watch video...
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