Chakri Lokapriya on two auto stocks to bet on for near term
«Defence as a segment, whether you take any other country companies, Lockheed Martin in the US, etc, their order book despite being mature countries grow very fast. So, there is a trading positional investment opportunity in, let us say, Bharat Electronics or HAL, but valuations are still rich,» says Chakri Lokapriya, Managing Partner, RSB LLP.
What the outlook is on some of these defence stocks, given the fact that they are a buzz in today's trade, what is it that catches your eye within the sector?
Chakri Lokapriya: The defence stocks, as we know, have corrected in the last month or so. The outlook remains strong, as the order book for these companies is never in question for the next three to five years. What was in question is the valuation and the ability to sustain the momentum of the order book, which I think the second question is easier to answer, which is the order book momentum will continue. Defence as a segment, whether you take any other country companies, Lockheed Martin in the US, etc, their order book despite being mature countries grow very fast. So, there is a trading positional investment opportunity in, let us say, Bharat Electronics or HAL, but valuations are still rich.
Wanted to get in your take on the entire auto basket, given that expectations are very tempered when it comes to the August auto sales numbers, do you think you would be approaching this space with a bit of caution?
Chakri Lokapriya: No, I think we have to look past this last couple of months and look into, as we reach into
