Deven Choksey, Managing Director of DRChoksey Finserv Private Ltd, has expressed a preference for auto ancillary companies over original equipment manufacturers (OEMs), while also highlighting potential opportunities tied to the Happiest Minds and ITC Infotech transaction.

In comments to CNBC-TV18, Choksey said he sees stronger prospects for auto ancillary companies relative to OEMs. Auto ancillary firms supply components and systems to vehicle manufacturers, and the segment has drawn investor attention as the Indian automotive industry continues to prioritize electrification, localisation, and technology development. Component suppliers typically serve multiple OEM customers across internal combustion and electric platforms, a diversification that analysts often weigh when comparing the segment with vehicle makers, which carry heavier capital costs and face direct exposure to consumer demand cycles.

Beyond autos, Choksey pointed to Coal India's efficiency gains, indicating that operational improvements at the state-run coal producer have strengthened its outlook. Coal India accounts for the bulk of India's domestic coal output, and its production and offtake numbers are closely tracked as indicators of both company performance and broader energy supply in the power sector. He also commented on Welspun Corp, noting that the pipe manufacturer's order visibility remains a key consideration, though the remarks were truncated in the published excerpt.

Additionally, Choksey flagged the Happiest Minds–ITC Infotech deal as a source of opportunity, suggesting the transaction carries significance for the IT services landscape. Happiest Minds is a mid-sized Indian IT services firm focused on digital transformation services, and consolidation involving mid-tier players has been a recurring theme in the sector as companies scale capabilities to compete for larger digital deals.

The full discussion is available on CNBC-TV18 (original video page).