Motilal Oswal’s Raamdeo Agrawal says he got hammered by Maruti Suzuki shares; predicts recovery

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Published: August 17, 2019 4:15:12 PM

Amid the ongoing stock market plunge even as auto and consumer stocks continue to see major draw downs, Raamdeo Agrawal of Motilal Oswal says that he got hammered by the plunge in Maruti Suzuki and Eicher Motors shares.

auto sector crisis maruti suzuki cuts off 3000 employee jobsSharing his leanings, from the current stock market correction, Agrawal noted that he learnt the difference between secular and deeply cyclical stocks.

Amid the ongoing stock market plunge even as auto and consumer stocks continue to see major draw downs, Raamdeo Agrawal of Motilal Oswal says that he got hammered by the plunge in Maruti Suzuki and Eicher Motors shares. “We had to take 40-50% knock from Eicher, Maruti. We had 7%, 8% allocation each and just between these we had 15%, 15%. It has come down to say half so 6-7% decline in the entire portfolio has happened because of these two. So yes, we have suffered,” Raamdeo Agrawal said in an interview to ET Now.

Also read: Morgan Stanley’s Ridham Desai says it’s time to buy stocks; but there’s a catch

Taking stock of the current stock price of Maruti Suzuki, Raamdeo Agrawal noted that the stock was valued at 40 PE just about an year ago, and was trading near the Rs 10,000 mark. Asked whether we could see those levels, Raamdeo said, “No, everything will come back. I do not know how long it will take. The reality is that it is Rs 5,500 or 6,000. So from 6,000 to say Rs 12,000 would take about three years,” he told the channel. 

Sharing his leanings, from the current stock market correction, Agrawal noted that he learnt the difference between secular and deeply cyclical stocks. “This time, I got completely hammered by my good amount of auto holdings which turned out to be cyclical. It was cyclical but I did not know it was coming and it was coming so severely,” he said. Despite the ongoing slowdown, Raamdeo continues to remain fully invested in the stock market.  “I am a bull in bear market. I am still bullish and I am fully invested. I will go down with the market only. I am not a guy who is sitting on 10% cash and things like that so that is not the issue,” he told the channel.

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