Automotive sector: M&M leaders, Eicher shines in the premium segment
When asked about the automatic 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, but the tractor segment is also doing very well for them.”
He added that between Maruti and Hyundai, the brokerage prefers Hyundai for its stronger SUV range. “We have given higher multiples to Hyundai, largely due to its better SUV portfolio, while Maruti is expected to catch up. But Hyundai has a better offering, so we are a little more positive on that,” he said.
In commercial vehicles, Ashok Leyland was a “positive surprise” while in two-wheelers, Eicher Motors remains a preferred choice. “They clock more than one lakh kind of unit. It is one of the best ways to look at the premiumization side and obviously CV helps them too,” Pandey noted.
Chemical segment: Fluorochemicals stand out
The analyst expressed optimism about the chemicals sector, especially the R32 gas segment, which saw strong earnings momentum. “We have been very positively surprised by the chemical segment, especially the R32 gas segment, so we have seen most players come out with good numbers,” he said.
He expects Navin Fluorine, SRF and Gujarat Fluoro to perform strongly, supported by capacity additions and higher gas prices. “Navin Fluorine still looks very attractive to us despite the run-up. SRF and Gujarat Fluoro are something we expect to do much better… given that many developed economies will lose their quotas,” he added.
Defense: PSU favorites remain in focus
On defense, Pandey acknowledged that the sector has already outperformed but still shows promise. “Defense has already done well against the market in the last one or two years, so none are cheap. But yes, what we like again are PSU names like Bharat Electronics,” he said.
He highlighted Bharat Electronics (BEL) for its consistent performance and HAL for its steady growth, while also supporting Data Patterns in the private space. “Radar will not only be used in the air force, it also has broad implications or wide use on other platforms,” he pointed out, adding that defense as a sector is expected to support a “high-teens kind of growth.”
Titan and Jewelry: Softening Gold Prices May Boost Demand
Commenting on Titan, Pandey expects stable performance despite gold price volatility. “The business update was quite strong, so we expect around 18% growth in consolidated revenues to somewhere around Rs 16,000 crores as the jewelery sector will grow at 18 per cent, CaratLane at 30%,” he said.
He expects margin improvements in the future, supported by seasonal factors. “The next 45 days are quite crucial as gold prices have dipped a bit and the wedding season starts this month and will last till mid-December. Cooling down in gold prices is quite constructive for Titan,” Pandey added.
The broader vision
Pandey’s comments indicate that confidence in cyclical developments such as auto and defense sectors continues, while chemicals and jewelery could provide stable upside potential. Its top picks – M&M, Navin Fluorine, Bharat Electronics and Titan – reflect a mix of growth momentum and sectoral resilience amid changing market dynamics.
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