Maruti Suzuki, Ashok Leyland, M&M can be bought on dips: Kotak Institutional Equities
Auto sales numbers were weak in December due to subdued consumer sentiment and volatile fuel prices. CNBC-TV18 spoke to Hitesh Goel, senior analyst at Kotak Institutional Equities, about the auto sales data and what it means for the sector.
Auto sales numbers were weak in December due to subdued consumer sentiment and volatile fuel prices. CNBC-TV18 spoke to Hitesh Goel, senior analyst at Kotak Institutional Equities, about the auto sales data and what it means for the sector.
"The demand for the auto sector has been weak and started to come off after the cost increases due to insurance and other additional costs," Goel said.
"From July onwards there was an impact seen on retail demand for Eicher Motors, which will continue going forward," said Goel.
When asked if the current decline in auto stocks present buying opportunities, Goel said, "It would have to be very stock specific. Maruti is well placed for next 2-3 years."
"For the overall sector, demand is unlikely to come through even in the fourth quarter and therefore stocks may remain sideways or correct 8-10 percent. On dips one could look at Maruti, Ashok Leyland and Mahindra and Mahindra."
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First Published: Jan 2, 2019 10:31 AM IST
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