Prefer Subros, Pricol: Deven Choksey

Deven Choksey, MD at KR Choksey Shares and Securities told CNBC-TV18, "Given the possibility of having better domestic market for commercial vehicles in the second half most of these companies are experiencing good amount of order in take as far as the supply is concerned to some of the auto majors. So, from that perspective we are likely to see major growth coming into auto ancillary companies.”

He further added, “The selection of the companies would certainly matter at this point of time. We like companies like Bosch, Wabco India and Bharat Forge but they all have run up significantly. To my mind one will have to buy these companies in a corrective downside though I don’t see any problem with the business conditions. However, from valuation perspective these companies could be bought in corrective downside.”

“If one wants to pick and chose, some of the smaller companies where the opportunities are still there. I would consider a company like Pricol. The company is well set for higher amount of growth with the expanded capacities and at the same time have got values already built into from the perspective of higher amount of infrastructure already built by them. So, to a greater extent we could see the benefit of this capacity that they have in coming times with the volume increasing. So, one could consider Pricol at this point of time; add into to the portfolio.”

“Subros also we like from the auto ancillary space. However, it has also had a sharp run up in last few trading days. In the corrective market downside when it consolidates it would be a good opportunity to add into Subros as well along with Pricol,” he said.