Auto sector to stay bullish, eye companies like Hero Motors, Bajaj and Maruti: IV Subramaniam

In a chat with ET Now,IV Subramaniam, MD & CIO, Quantum Advisors, shares his views on auto sector.

ET Now: What makes you bullish on auto?

IV Subramaniam: Looking at India over the next few years you have more young people coming on to the job market, new cities being created, and no significant changes in public infrastructure. So, therefore there is a need for private vehicle. It could be a two-wheeler or it could be a four-wheeler depending on what you can afford.

There is a long term case for owning an automobile in your life and therefore from a stock perspective we like companies like Hero Motors, Bajaj or even Maruti as they cater to the demand.

Valuation wise compared to where they were in the past, they are neither at peak nor at bottom somewhere in between and we are happy to hold them and ride all the way till it reaches our sell limit that makes us bullish on the automobile stocks.