Semi-conductor issue broadly resolved now, says Siddharth Sedani; picks 4 auto stocks with high return potential
In todays theme which he referred to as Tez Raftaar, Sedani picked Bajaj Auto Limited, Ashok Leyland Limited, Motherson Sumi Systems Limited and Craftsman Automation Limited for handsome returns.
Semi-conductor issue will soon be a thing of past and the domestic automobile sector is poised well to grow from here, market analyst Siddharth Sedani tells Zee Business Managing Editor Anil Singhvi in the popular show 'SID Ki SIP'. The analyst picks four stocks from this sector adding that the issue of semi-conductors has broadly been resolved.
In today's theme which he referred to as 'Tez Raftaar', Sedani picked Bajaj Auto Limited, Ashok Leyland Limited, Motherson Sumi Systems Limited and Craftsman Automation Limited for handsome returns.
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India is that 4th largest automobile market in the world and has attracted USD 25 bln in Foreign Direct Investments over the last two decades, he said.
The two-wheeler passenger vehicle has a strong market along with commercial vehicles and tractors, he added.
Speaking on the stocks he said 4 companies are there:
1. Bajaj Auto: Sedani gave a target of Rs 4280 and asked to make 30 percent allocation on Bajaj Auto. He said that it is a leading two-wheeler company and the largest three-wheeler company with export at around 52 percent and has a strong balance sheet with Rs 20,000 crore in books.
2. Ashok Leyland Ltd: The market analyst said that it is one of the leaders in commercial vehicle market. He said that commercial vehicle is connected with GDP which is being now estimated to grow at 9.5 percent this year. He gave a target of Rs 155 and allocation of 30 percent.
3. Motherson Sumi Systems: He said that the company caters to global passengers' vehicle space and makes plastic bodies, mirrors, etc. The company has also recently hired a Bengaluru based company because of which it will enter aerospace sector and will cater to Airbus, Boeing. He gave a target of Rs 264 and allocation of 20 percent.
4. Craftsman Automation Ltd: The market analyst gave a target of Rs 2655 and asked to make an allocation of 20 percent in this company. He said that it can become a debt free company in FY 24 and has a strong earning growth potential.
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