Prefer auto component theme on strong exports, likely demand revival: Deepak Shenoy

In an interview with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on the auto component space.

ET Now: I believe you still have a preference for the auto component and the textile space. Is this because these are export oriented stocks and they are continuing to deliver?

Deepak Shenoy: The auto component theme itself has been mixed. Their export oriented stocks have actually done very well in terms or results. Balkrishna Industries, though it is not really an auto component theme and is more of tyres, has done really well.

We have seen pretty much the whole sector deliver fairly good results, although, Motherson Sumi saw a bit of a dip on Friday. I have not seen what today's move is like; but, I see that space as a very strong space, both from an export perspective and also from a pick up from a domestic perspective in certain areas.

One of the names we like is Igarashi Motors, which is a part of the auto component space. We have seen some other stocks which we do not particularly favor, we think they could be overvalued as well and I would not name any of them right now because we do not hold them. However, the auto component space has been a lower price story comprised of auto majors so in that context is the PE rerating.