Envision’s Nilesh Shah thinks this is the sector to watch for next 2 years

"ABB Power Products is a major leading player in transformers. So much action is happening in the renewable space. Triveni Turbines essentially is going to play a very significant part with all the private sector capex happening in the power space... Look at names that are leaders, are focused, niche and capital-efficient, and where there is still a lot of headroom to generate alpha over the next few years,” he said.

Shah prefers auto ancillaries to auto stocks, as the demand for components is going to remain be it electric vehicles or conventional plays. “The auto component space is a much effective way to play the entire demand for automobiles because they are pretty much vehicle agnostic, OEM agnostic and technology agnostic," he said.

"They obviously have the replacement market and the exports market. So whichever way you look at it, in terms of the big opportunity, the linear opportunity, or a diverse set of opportunities, auto components are a better way to play, from a bottom-up perspective as well as a good proxy for automobiles,” he added.

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