Investors in the auto sector should focus on stocks that are still experiencing demand and can offset higher commodity prices. Demand patterns in the auto industry are changing, with a shift from sedans to SUVs. Steel prices are expected to rise in the coming months, which could further impact margins. In the two-wheeler segment, the premium luxury bike market is expected to perform well."
“ JSPN is our top pick in the ferrous space followed by Tata Steel and in non-ferrous our top pick is Hindalco. For the first time in my 20 years career in the metal space, I am seeing that companies are adding capacities but without any additional debt. The debt will remain unchanged while EBITDA will go up.”