Do not expect auto stocks to melt down : UR Bhat

In a chat with ET Now, UR Bhat, MD, Dalton Capital Advisors, shares his stock ideas.

Does it seem like the fundamental strength that we have seen in the auto space with the kind of monthly volumes seems to be fizzling out because up until now, it is only Hero Honda which is impressive?

The April numbers are not exactly music to anybody's ears, at least not to the ears of the bulls, but if you really see during the slowdown for the last say 18 months, this is the only sector which was really performing very well in terms of numbers. They have been able to grow their monthly sales quite dramatically. It was as if there was no slowdown at all in India, at least as far as autos are concerned. But right now we are talking about a very high base of last year and of course there is quite a lot of bunched up purchases in March. Therefore, month on month it might look a bit down, otherwise I do not expect them to melt down from here but at least in the mid to high teens is a growth number that I think one can work with.