Among all the pockets of the market that have been underperforming the benchmark indices in the past few months, auto is one segment that has actually given negative returns. In the last three months, the Nifty Auto index has slipped as much as 6.6 per cent. On a weekly and monthly basis too, it has given negative returns. Stocks like Maruti Suzuki, M&M and Tata Motors have all eroded wealth in the last three months.
In today’s special podcast with independent market expert Rajiv Nagpal, we try to understand if auto stocks can bounce back sooner than expected.
Listen in.
Welcome to the show Mr Nagpal.
1) Auto stocks have been underperforming the market due to challenges on both demand and supply side, besides higher raw material costs. Do you think that the demand in the upcoming festive season can revive sentiments?
2) Are auto ancillary companies better placed in the current demand environment?
3) Talking about valuations, how comfortable are you with the PE multiples that stocks like Maruti, M&M, Ashok Leyland, Eicher Motors and others are trading at? Do you smell an opportunity to buy or you find the stocks a little overpriced?
4) How big a disruption do you see from EVs? Given the fact that the shift is going to happen gradually over the next few years, should one bet big on EVs now or build up positions gradually?
Thank you Mr Nagpal. That’s all in today’s special podcast. But do keep checking this space for more such interesting content. Good bye!
