Rahul Shah's Top 3 Auto Sector Picks in the Current Market
In an interview with ET Now, Rahul Shah, VP-Equity Advisory at MOFSL, shared his insights on the current state of the market, the auto sector, and his top picks for investors. Despite the recent dip in the market, Rahul Shah is optimistic about the future and advises investors to cherry-pick small and mid-cap stocks. In this article, we will explore Rahul Shah's take on why it is not a bear market and his top 3 picks in the auto sector.
Table of Contents
Introduction
The State of the Market
Cherry-Picking Small and Mid-cap Stocks
The Auto Sector
Top 3 Picks in the Auto Sector
Conclusion
FAQs
The State of the Market
The market has seen a recent dip, leading many to believe that we are in a bear market. However, Rahul Shah disagrees, stating that it is just a correction and an opportunity to cherry-pick small and mid-cap stocks. He explains that due to a lack of interest from investors, these stocks have tumbled down, but this presents a good opportunity for investors to get into these stocks at a lower price.
Cherry-Picking Small and Mid-cap Stocks
Rahul Shah advises investors to look at cherry-picking small and mid-cap stocks. He explains that more than 50% of small-cap stocks are down more than 65% from their 52-week high. While this may seem like a bear market, he believes that it is just a good correction and an opportunity to buy quality stocks at a lower price.
The Auto Sector
When asked about the auto sector, Rahul Shah shared his insights on the impact of the recent unseasonal rainfall on the sector. He explained that demand has been muted due to the rainfall, but the commercial vehicle segment looks interesting and could see growth moving up. In fact, he believes that in the entire auto sector, commercial vehicles would remain a top bet.
Top 3 Picks in the Auto Sector
According to Rahul Shah, the top 3 picks in the auto sector are:
Ashok Leyland: This is the top bet in the auto sector as the commercial vehicle cycle will not get impacted and demand will likely continue.
Eicher: In the premium segment, Eicher remains a top bet in the two-wheeler space.
Maruti: Despite a lot of gains being given up, Maruti remains a strong bet in passenger vehicles with the launch of two new variants – Jimny and Fronx – for which bookings have also been good.
Conclusion
Despite the recent dip in the market, Rahul Shah remains optimistic about the future and advises investors to look at cherry-picking small and mid-cap stocks. In the auto sector, he believes that commercial vehicles would remain a top bet and recommends Ashok Leyland, Eicher, and Maruti as his top 3 picks.
FAQs
What is Rahul Shah's take on the current state of the market?
Rahul Shah believes that the recent dip in the market is just a correction and presents a good opportunity for investors to cherry-pick small and mid-cap stocks.
What is the impact of the recent unseasonal rainfall on the auto sector?
The recent unseasonal rainfall has led to muted demand in the auto sector, but the commercial vehicle segment looks interesting and could see growth moving up.
What are Rahul Shah's top 3 picks in the auto sector?
Rahul Shah's top 3 picks in the auto sector are Ashok Leyland, Eicher, and Maruti.