Varun Lohchab discusses the positive outlook for the auto ancillary space and Indian battery companies. The auto component sector is expected to see increased investments and greater content due to premiumization and the Make in India initiative. Battery companies have attractive valuations and are transitioning towards renewables. Overall, there are opportunities across multiple sectors in the current macroeconomy.
“What we were expecting for CY2024 actually came in the last one-two months itself. Another 8 to 10% is possible for next year, but double-digit returns from here on looks difficult for the next calendar year given where valuations are sitting because earning growth, we believe, next year is going to be in the low teens at best.”