Share Bazaar News India

Deven Choksey of KR Choksey Securities is of the view that one should stay invested in auto space and if not bought maybe buy at lower levels.

Choksey told CNBC-TV18, "In auto let’s look at the April numbers a bit in detail and then take a call. According to me April number is largely out of two reasons one of course the excise cut in the result and the impact on the prices. But most importantly most of the dealers and the consumers got the wind out of the announcement of some of the companies that they maybe increasing the prices of autos. So to a greater extent even the rate of interest is not coming down, most of the consumers have taken the decision in favour of buying the vehicles for which I think April month unusually the numbers have been higher."

He further added, "In my viewpoint we will have to wait and see whether in the month of May and June also this kind of growth sustaining. If it does sustain then definitely auto would be a clear buy. But one would look at the valuation first before one would like to get into this say company like Maruti or Tata Motors I think if they are looking attractive at the current level with a forward price to earnings (PE) of around 12-12.5 maybe they are interestingly placed because if even if one has to buy at least three-months in advance or six-months in advance they will probably heal the return of around 25-30% at the end of the year. So selectively one should stay invested in auto and if not bought maybe buy at lower levels. If this number sustains it is all the more positive for this sector."

Source: Moneycontrol.com