Bullish on the auto space in general: Forefront Capital Management

Radhika Gupta, Director, Forefront Capital Management, in a chat with ET Now talks about the auto space.

Do you go bullish on Auto ancillaries space?

More bullish on the auto space as a whole - the auto maker space in the auto ancillary. No doubt that the whole space will benefit from the macroeconomic environment, the interest rate environment and has survived the little bit of rough time during the excise duty. Within the auto space the guys we really like are Mahindra & Mahindra which has done very well. Sales have taken a big pick up primarily on the tractor business and we think that should do well because there is a lot of government support towards the farming sector. There are lot of subsidies towards that area.

So I think the tractor business should do well and even their core auto business the UVs and some of the truck business they launched - the light truck that’s turned well - has seen a pick up in volumes and as they distribute out to the rest of the country that should do well. So we are more bullish on the auto space in general than in the ancillaries.