Auto stocks have experienced a significant upswing, with Hero MotoCorp and Bajaj Auto leading the charge. But are these auto stocks becoming overvalued? Is the valuation of these two- and four-wheeler stocks a concern for long-term investors? Deven Choksey, MD of DR Choksey FinServ Private, shares his insights. He highlights that companies like Bajaj Auto are shifting from conventional models to a mix of electric and traditional vehicles, attracting dedicated funds that could lead to a prompt rerating of their stocks. With strong fundamentals and a robust consumer base, these companies are successfully premiumization their products, offering consumers more choices as their purchasing power increases, in turn boosts profit margins. While the outlook is positive, Deven Choksey warns that the market may face corrections in the future, potentially creating buying opportunities. Watch Deven Choksey’s full analysis for more insights!