Needs suggestions on Ashok leyland and Waterbase

Create Thread: Hi friends, any suggestions on buying waterbase and ashok leyland at current levels??

 

I am worried about stock like waterbase because anytime problem of disease, ban by foreign country etc can come anytime. Also flood situation can happen and cause danger to shrimp feed. Looks like risky stock. Better stick with safe stock IMHO.

Ashok Leyland is very good stock but it depend on economy to move and buy trucks. better to consider auto ancilliary stock like Fiem, Minda, Phoenix, Suprajit, LG Balkrishna. These are excellent company with good management, low debt, high ROE and good track record of growth. Even valuation is reasonable from long term basis.

Tata Motor is also very good stock because you get mix of commercial (CV) and domestic (passenger) and also luxury like JLR. Also management is very good. Valuation is very low. It is a nifty stock.

So big choice is there in large cap and small cap space in auto sector. IMHO ancilliary stock are better because they are serving all secgemts like commercial and passenger sectors of industry.

 

Also Oriental Carbon is indirect play on auto sector because they are manufacturing sulphur used for tubeless radial tyre. It is a monoploly company in the product. Very good management. Also NOCIL is a play because they are maunfacturing rubber chemicals for use in tyres. They are also leader in sector.

 

waterbase is thapar group(crompton) company