There are some good opportunities to look at in auto stocks, particularly in small and midcap space, said Gurmeet Chadha, co-founder and chief executive officer, at the Complete Circle Consultants on Friday. Chadha also expects PI Industries to double in next two-three years, while adding that he remains reasonably constructive on capital goods, especially L&T.

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“We are reasonably constructive on capital goods,” said Chadha in an interview with CNBC-TV18. “We like Larsen and Toubro (L&T),” he said.

According to him, United Phosphorous Ltd (UPL) is going through a bad phase.

“The better call is still to look at PI Industries. It is a fantastic industry. Rs 1,000 crore quarterly revenues now, with Rs 200-250 crore run rate on profits, you will see doubling over next two-three years,” he said.

Chadha expects some consolidation to happen in auto stocks.

“There are still some good opportunities to look at. In smallcap and midcap space, Suprajit Engineering is a great company. Minda Industries – you have to look at it from a long-term view, use any opportunity to add. I continue to be constructive on Mahindra and Mahindra (M&M) and largely the farm equipment play,” he said.

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(Edited by : Ajay Vaishnav)

First Published:Dec 11, 2020 10:28 AM IST