The stock price always moves based on the anticipation of what is going to happen rather than what has happened. Though these stocks could be a fundamentally good stock, being profitable etc but Market expects their future growth to be subdued in the near future.
That is reflected in the Nifty Auto index. It had a stellar up move for last ten 10 yeas, from 2008 to 2018.
But look at whats happening post 2018, the auto stocks are on steady decline. In fact, this year so far, Nifty Auto is the worst performer.
Stocks like TATAMOTORS has been in decline since 2017.
Ashok Leyland has stellar up move from 20 levels to Rs.170 levels, but post 2018, it has corrected almost 50% from its peak levels. Clearly all major auto companies are under cyclical correction. We cannot expect any major rebound in the near term.
Instead its better to focus on other sectors that been doing well for now, stocks from Energy Sector, IT sector and Real Estate stocks are the one that performed very well in recent past, which indicates there is a huge buying interest seen in these stocks. So betting on these stocks would be more helpful than focusing on Auto sector.