Ashok Leyland is on right track: Parag Thakkar

In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, explains why ALL and Mahindra are favourites in auto pack


ET Now: Your favoured pick from the auto pack is Ashok Leyland.In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, explains why ALL and Mahindra are favourites in auto pack

Parag Thakkar: Yes definitely because the company is absolutely on the right track even after Chennai floods and they reported very good volumes. January volumes were also very good. They are gaining market share. Plus they will continue to sell non-core assets so they have reduced debt dramatically over last one-and-a-half year and the process will continue. So on one hand you have great cyclical opportunity in terms of CV cycle picking up because of road and increase in the coal production and on one hand you are gaining market share, you are reducing debt so you are doing all right things and business cycle is also in your favour. So Ashok Leyland is one. Mahindra, of course, offers great because of its clear focus towards rural India which is going to be the government focus as well in this budget. It will take two-three quarters to revive but Mahindra offers great value on dips in the auto space.