Valuations continue to be attractive in four wheeler space: Sandip Sabharwal, Prabhudas Lilladher

In a chat with ET Now, Sandip Sabharwal, CEO-PMS, Prabhudas Lilladher, shares his views on auto space.

ET Now: Will you be bullish on autos?

Sandip Sabharwal: Four wheelers are much better placed than a two-wheeler pack. Two wheelers have grown aggressively over the last two-three years and this year the growth rates are scaling down. The competitive intensity has also increased. So that will put further pressure. These stocks have been reasonably owned among investors. So that will continue to put some pressure on the stock. Among the four wheeler space, valuations continue to be attractive and demand drivers still continue to be there. At the same time, interest rates have come off. As pressure on the rupee reduces and the full impact of the global commodities correction comes through into the Indian inflation, the four wheeler space looks very well placed. Secondly, last year we saw a lot of cost pressures on these companies because of higher input cost and that pressure should not be there this year. The entire four wheeler space, in terms of autos, looks attractive. So, auto is another space we will play.