Eicher & Amara Raja Battery clear winners in auto sector: Sonam Udasi

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital shares his view on auto sector:


ET Now: But from the auto space, what else would be of interest to you right now given that all three companies have their own business models – M&M is depending on the tractor business, as Maruti which is going in for price hikes, you have already spoken about Tata Motors and then of course this Hero MotoCorp and Bajaj Auto?

Sonam Udasi: We are negative on Maruti. Among the two wheeler space, we continue to like Bajaj Auto over Hero Honda but if there has to be a clear buy recommendation, there are two counters that we like – one is Eicher and the other one is Amara Raja Battery – for both the numbers are going to be strong over the next few quarters and should sustain valuations so these are companies that look to be clear winners over the next one, one-and-a-half years.