Do not prefer investing in commodities for next years: Manish Sonthalia

In a chat with ET Now, Manish Sonthalia, Sr Vice President & Head–Equity Portfolio Management Services, Motilal Oswal Asset Management–PMS, shares his views on commodities.

ET Now: What is your specific call on some of the beaten down commodity metal names at this point? The big trade over there has largely been Tata Steel with the likes of Hindalco, the aluminium majors, anything that you like specifically there or for that matter anything from the engineering space that you fancy?

Manish Sonthalia: Commodities, metals, we are zero. We are not having any stocks whether it be Tata Steel, Hindalco etc. but within the engineering capital goods space in the large cap portfolio, we own a Larsen & Toubro. In the midcap portfolio, we have Voltas. We have an Engineers India. We have a Cummins. These are some of the value plays. Growth is faltering but you have impeccable management. You have a decent payout ratio. Whenever the investment cycle picks up, you will see some of these names do well.