Market to remain overall buoyant as domestic MF flows very strong: Sachin Shah

economictimes.indiatimes.com:

«There may be years where you might see a muted volume growth of about 5-6-7%, but the value growths are far more higher and that is probably reflected in some of the results, like the Maruti results that we have seen for the last the entire financial year 24 and also the first quarter of financial year 25, where the value growth in terms of the revenue, gross profit, EBITDA, is in high double digits,» says Sachin Shah, Emkay Investment Managers.

Let us begin by discussing the auto space itself. Quite a few launches lined up. There is the expectation of rural recovery as well. But at the same time, these stocks have run up quite substantially over the last couple of years in terms of the stock price. How do you weigh the risk-reward for this sector right now?
Sachin Shah: So, clearly, within the auto, we have three large segments. One is, of course, the passenger vehicles, then you have two-wheelers, and then commercial vehicles. All the three segments have done exceedingly well in the last two-three years now. And the underlying theme between particularly in the passenger vehicle segment which is what you were referring to earlier is largely the game of premiumisation.

And we are seeing that across OEs, because one, of course, the big premiumisation that we have seen in the passenger vehicle segment is where what SUV segment used to be less than 20% say less than three-four years back. Today, it is more than 50% of the overall volumes. And of course, within that also the higher variant models are getting sold, not