Bet on M&M, Bajaj Auto & Hero Honda in auto space: Paras Adenwala

Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors in a chat with ET Now talks about auto stocks.

With these auto stocks, yesterday a good set of numbers coming out, Maruti posting good numbers, Mahindra & Mahindra also posting good numbers. Would you be a player for more of the two-wheeler stocks or two-wheeler companies or you still bet big on the four-wheeler ones, like Mahindra and Mahindra and even for that matter, Tata Motors?

I would bet on two wheelers and Mahindra and Mahindra for the simple reason that they are a play on rural economy and if we are going to be seeing good monsoons, both the two wheelers as well as the SUVs will do very well, the practice will do very well and, therefore, these stocks present better value as compared to passenger car segment and, therefore, I would bet on the three companies, Bajaj Auto, Hero Honda and Mahindra & Mahindra out of the total automobile space.