Would bet on Bosch and Wabco in the auto ancillary sector; likely to do well in long-term: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, HoR, ICICIdirect.com, shares his views on the auto ancillary sector.

ET Now: Auto ancillary is the other pet theme. Be it Bharat Forge, Motherson Sumi or tyre stocks like Ceat or JK. What do you like within the ancillary theme?

Pankaj Pandey: We like Bosch and Wabco. Wabco is a good play on the ABS story which is expected to unfold. So we would like to believe that these stocks though remain expensive, but the sheer kind of earning growth and the comfort on the earnings growth makes us believe that the stocks will continue to do well. Bosch would be a good play on the new emission norms which the government would plan over the next one or two years. So we would like to believe that these stocks are good portfolio bets and even though they might be expensive at current levels but they require good comfort on the earnings front.