Pick auto for a longer term horizon: Sangeeta Purushottam, Managing Director, Nine Rivers Capital

In a chat with ET Now, Sangeeta Purushottam, MD, Nine Rivers Capital, gives her views on auto pack.

ET Now: What is the best way to play consumption as a theme in India, buy banks which are a proxy to consumption, buy autos which are dependent on consumer demand or buy consumer names because they have pricing power and they have brand advantage?

Sangeeta Purushottam: If you kept valuation aside, it would be the consumer companies but frankly you cannot do that and therefore the valuations are factoring in a lot of positives. So, on a relative basis if you are taking a longer term call, autos are better because the valuations are not at their peak levels. There are some small cap names you could still get which are trading at say sub-10 PEs, which are very selective but those would be smaller investments because of the smaller size of those companies. So on a relative basis, I would pick auto if you are looking at a longer term horizon.