Bet on Atul in auto space; expect 18-20% earnings growth in coming year: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research at Mintdirect.com, shares his views on Atul Auto. Excerpts:

ET Now: Do you track Atul? What do you think of it?

Avinnash Gorakssakar: We have been recommending it to our clients. In fact, if you see the business model for Atul, in terms of earnings, they have been growing consistently. We have been hearing reports that possibly at some stage, the current Lalbhai management might offer some stake to a strategic investor. This would be needed because if they want to ramp up the business and get better exposure, that is what most people are expecting. Even at current levels, there is a good amount of accumulation and probably in the coming year, we could see at least 18-20 per cent earnings growth.