Nirmal Bang positive on these two auto ancillary stocks

Automobile companies registered record wholesale dispatches in October, in anticipation of a solid festive season. The industry has been reporting a month on month increase in retails, but the growth recovery compared to last year remains sluggish.

Speaking about the auto space in an interview to CNBC-TV18, Rahul Arora, CEO of Nirmal Bang Institutional Equities said, “We continue to like Hero Motocorp as our top play and a lot of the ancillary stocks will also start doing well. Both have domestic as well as export presence and we are positive on names like Endurance Technologies, Balkrishna Industries.”

“For auto portfolio, look at Maruti from the passenger vehicles and M&M from the tractor side, Hero Moto from the two-wheeler space and a couple of ancillaries like Endurance and Balkrishna,” he added.