Component mix may impact some auto ancillary stocks more than others: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, talks about auto ancillary stocks.

ET Now: What is your view on select auto component makers wherein the industry trends are changing, despite as marquee as they may be? Could there be bad stocks for investment? Bosch can be one example.

Deepak Shenoy: I do not see that as an immediate problem right now. You got some stuff that worked for auto component stocks. The pay commission hike should help smaller cars at least. We have fall in fuel prices, which should help small cars and bikes. So I do not think it is across the board statement. However, some players will be overvalued, while others may continue to be undervalued. In that context, the growth dynamics may shift to the smaller cars and motorcycles rather than in SUVs. So component mix may impact certain stocks more than the others.