Exide, Apollo Tyres good bet in the auto ancillary space: Saurabh Mukherjea, Execution Noble

Saurabh Mukherjea, Head of Indian Equities, Execution Noble, in a chat with ET Now talks about the auto sector and the auto ancillary space.

What is the one stock that you are recommending clients from the auto pack and what about Tata Motors?

We do not cover Tata Motors per se. More than the auto sector, we see auto ancillaries of being considerable interest to investors. The best of the auto boom is probably behind us but what has happened is the supply chain constraints have moved into the auto ancillary segment where there is enormous demand but not enough supply.

As a result, the auto ancillaries, the Exides, the Apollo Tyres of the world have been left with a pricing pressure, which they deal with very well. So auto ancillaries over auto would be my suggestion and within that, Exide Industries and Apollo Tyres would be the stocks we are recommending to clients.