The Indian auto sector continues to remain one of the better-performing segments, but much of the optimism is already reflected in valuations, according to market expert Anand Tandon in a recent ET Now interaction. He noted that the Delhi EV policy may create some winners and losers, but the broader sector trend remains intact. At the same time, he cautioned that valuations are stretched compared to global peers. “Autos have already been one of the better performing sectors. There is not much left to discover there,” he said, adding that “most companies are trading at valuations that look eye-popping compared to global peers.” However, he also pointed out selective opportunities, noting that “Eicher Motors may offer a relook opportunity given its correction and brand positioning.”
On the earnings outlook, Tandon expects a slightly subdued season, but believes the market has already priced in most of the weakness. “Most companies will report slightly subdued numbers, but the market already knows this,” he said. He added that large sectors such as energy and metals are relatively predictable, while chemicals remain harder to assess at a granular level. Among the positives, he highlighted textiles, particularly cotton textiles, saying, “textiles could do well due to margin support.”
