Bullish on Ashok Leyland in auto stocks: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Chief Portfolio Strategist, Prakash Diwan's Wealth Circle, shares his views about Ashok Leyland Limited.

ET Now: At the current juncture, where are you putting your money to work?

Prakash Diwan: We believe that the midcap stories have a long-term potential or may potentially turnaround. A classic example is Ashok Leyland on the auto side. Stocks like Alok Textiles have done enough work to restructure the balance sheet and put off their debt, sell off the retail business. So, we would start seeing some sort of results from these attempts. Therefore, those are the ones that need to be chased, not the momentum plays because it could actually reverse any moment.