Bullish on auto: P Phani Sekhar, Angel Broking

ET Now spoke to P Phani Sekhar, Fund Manager-PMS, Angel Broking, on his view on auto stocks.

What is the call on entire auto pack, particularly the midcap auto stocks?

Autos look very good although I am not so sure about auto ancillaries, that is a mix bag. If you talk about an Escorts or a TVS Motors or Ashok Leyland, all of them if you see have been reporting very robust performance.

On sales front yes, there are margin pressures but in each of these companies, there is a semblance of a sustainable turnaround that we saw about three quarters back.

But in the last three months, the beating that all of them experienced have brought them to valuations which are 25% to 30% below the median.

So yes, you can always play for a 20-25% bounce in the next six months if everything else were to remain normal.