Recommend Motherson Sumi, Bharat Forge in auto ancillary space: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, VP, Institution, Angel Broking, shares his views on auto ancillary sector.

ET Now: Auto ancillary space, what is it that you are recommending from there, your top two ideas from that pack?

Mayuresh Joshi: Auto ancillary stocks like Motherson Sumi, Bharat Forge have done their move as well though over a longer period of time our take is that these companies will do extremely well. Specifically companies like Motherson Sumi where utilisation levels are improving, new plants being put in that will drive the margins and the ROEs for these incremental businesses going forward and these gains will obviously be at the longer end of the curve.

So again short term ROEs might look a little bit depressed but over a longer period of time they might do well.