Auto Sector: M&M Leads, Eicher Shines in Premium Segment
When asked about the auto pecking order, Pandey said, “M&M continues to do very well, so that is our top pick in that segment because not only the UV segment is doing well for them, in fact the tractor segment is also doing very well for them.”
He added that between Maruti and Hyundai, the brokerage prefers Hyundai due to its stronger SUV lineup. “We have been giving higher multiple to Hyundai largely because of the better SUV portfolio while Maruti is expected to do some bit of a catch up. But Hyundai has a better lineup, so which is where we are slightly more positive there,” he said.
On the commercial vehicle front, Ashok Leyland has been a “positive surprise”, while in the two-wheeler space, Eicher Motors remains a preferred choice. “They are clocking more than one lakh kind of unit. It is one of the best plays to look at the premiumization side and obviously CV also helps them,” Pandey noted.
Chemical Segment: Fluorochemicals Stand Out
The analyst expressed optimism about the chemicals sector, particularly the R32 gas segment, which has seen strong earnings momentum. “We have been very positively surprised by the chemical segment especially the R32 gas segment so where we have seen most of the players coming out with a good set of numbers,” he said.
He expects Navin Fluorine, SRF, and Gujarat Fluoro to perform strongly, supported by capacity expansions and elevated gas prices. “Navin Fluorine despite the runup still looks very attractive to us. SRF and Gujarat Fluoro are something where we expect things to be a lot more better… given the fact that a lot of developed economies will be losing their quota,” he added.
Defence: PSU Favourites Remain in Focus
Turning to defence, Pandey acknowledged that the sector has already outperformed but still holds promise. “Defence has already done well relative to the market in the last one or two years, so none of them are cheap. But yes, what we like is again PSU names like Bharat Electronics,” he said.
He highlighted Bharat Electronics (BEL) for its consistent performance and HAL for steady growth, while also backing Data Patterns in the private space. “Radar is not only going to be used in the air force, it has wide implications or wide usage across other platforms as well,” he pointed out, adding that defence as a sector is expected to sustain “high-teen kind of growth.”
Titan and Jewellery: Gold Price Softening May Aid Demand
Commenting on Titan, Pandey expects steady performance despite gold price volatility. “The business update was quite strong, so we are expecting about 18% kind of a growth in consolidated revenues to somewhere about 16,000 odd crores because jewellery business is going to grow at 18 odd percent, CaratLane 30%,” he said.
He anticipates margin improvements ahead, supported by seasonal factors. “The next 45 days are quite crucial because gold prices have softened a bit and you will have the marriage season beginning in this month and lasting till mid of December. Cooling off gold prices is pretty constructive for Titan,” Pandey added.
The Broader View
Pandey’s comments suggest continued confidence in cyclical plays like autos and defence, while chemicals and jewellery could provide steady upside. His top conviction picks — M&M, Navin Fluorine, Bharat Electronics, and Titan — reflect a blend of growth momentum and sectoral resilience amid evolving market dynamics.