Maruti, Ashok Leyland good bets in the auto sector: Ambareesh Baliga

In a chat with ET Now, market expert Ambareesh Baliga, shares his views on auto and auto ancillaries space. Excerpts:

ET Now: What is your picking order with the auto pack right now. Numbers on the passenger vehicles and two wheelers seem to indicate that things are improving a bit, even though commercial vehicle is still a wait-and-watch story. How are you looking at your portfolio there?

Ambareesh Baliga: My top pick still remains Maruti. Growth has been quite decent and at the same time, the way the yen is behaving is also quite positive for Maruti overall. That is one stock I will continue buying even at this juncture.

The other stock is in the HCV, LCV space, which is basically Ashok Leyland. Although I had recommended this stock at levels of about 32-33 from where it is, we saw an extremely good move and thus one can accumulate even at this juncture.

ET Now: Does that mean you are bullish on the CV cycle?

Ambareesh Baliga: Yes. I am looking beyond the next six-seven months.

ET Now: What about ancillary companies - which will supply to these companies?

Ambareesh Baliga: These stocks have already moved up quite a lot and they become like multibaggers. Most of them have moved up 2x to possibly 5-6x, so at this juncture, I will not go in for a fresh buy. I will just hold on stocks like Motherson Sumi and Bharat Forge.