Buy autos on correction; Tata Motors, M&M, Maruti top bets: Dipan Mehta

In a chat with ET Now, Dipan Mehta, Member, BSE and NSE, shares his views on the auto sector.

ET Now: Auto stocks currently are in a sweet spot and monthly dispatch numbers are pretty much indicating that the spring time is back for autos. Does it make sense to be a buyer in autos because auto as a group or the auto index this year has already appreciated by about 30 per cent plus?

Dipan Mehta: Yes, I would think so may be at corrections considering that we are having a bit of a cautious view at present. But certainly at corrections, autos and auto ancillary look quite interesting. Some of them have got an export orientation especially on the auto ancillary side. At the same time local market also is picking up for them, pent up demand also coming into play. So I would be positive on auto but like to stick with the number one, number two players. So if CVs are not going to do well then may be go with Tata Motors and may be at an Eicher as well over there considering the kind of position that company is in.

If you like two wheelers then just go for the best. Hero Honda would stand to benefit in terms of price action movement and within the passenger car just stick to Maruti and then there is of course Mahindra & Mahindra. So I would say go with the quality stocks in auto as well as auto ancillary and the good times continue for the industry as a whole. Globally also, auto sales remain pretty strong as we have seen and locally we are just about seeing gradual up cycle coming through within the entire automobile spectrum all the products per se.