Stock market guru and joint managing director of Prabhudas Lilladher, Dilip Bhat is positive on ITC, Ashok Leyland and Mahindra & Mahindra (M&M).
Bhat said, "We have a target price of around Rs 365-370 for ITC. Without a doubt, ITC will always remain on the radar of the investors. The question would be whether you want to buy this at this time or you wait for a correction. I would say that even from the current levels possibly we would really think about buying. ITC definitely deserves a place in your portfolio and even from here, you can make very decent returns over the next 8-12 months."
Talking on the automobile sector, he said, "We remain pretty upbeat and there could be some year-on-year impact as the last year on the same time we had phenomenal growth. So, in terms of growth, it looks a lot more muted and of course, there had some de-growth also in the last two months. But overall, I think within this automobile pack, if you can’t buy now, it will be very difficult to buy. Within the pack, Ashok Leyland looks very good for us. M&M is another stock that one should buy from the auto pack and both of them can deliver very good superior returns maybe over the next 6-8 months."
Further, Bhat said, "We are not looking so much into the auto ancillaries at the moment, but we still remain upbeat on these two names. Maruti Suzuki, of course, is always an evergreen stock to buy without any doubt. If I were to take one name in the auto ancillary, it would still be Motherson Sumi Systems."
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