Monday, February 14, 2011

Experts Advice On Markets(Auto Stocks)

Dipan Mehta,Member BSE/NSE,
The auto companies have delivered spectacular performance over the past 2-3 years and across the board quite attractive whether it’s two wheeler or four wheelers or the commercial vehicles depending upon where the comfort level is, I think investors could go for either or all of these shares. Personally I think we like M&M at this point of time. Usual caveat that we have recommendations, we feel that it is attractively valued and apart from a play on automobiles its also a very good play on the agriculture considering that a lot of their revenues come from rural areas and we have all seen the GDP growth rates and how agriculture is shaping up quite well and kind of consumer effect happening over there is quite phenomenalHe further added, “So we do fell M&M has a bit of an edge over some of its other peer group companies in the auto sector. If you take into account all the various subsidiaries and their valuations then this stock is really at quite attractive levels. We do feel that balance sheet quality has improved significantly. No risk of any large acquisition which they have done in the past or may do so in future. So there is some degree of stability and visibility within the stock. If I had to pick one company then that is the one that comes to my mind. But all the other companies be it Tata Motors, Ashok Leyland, Bajaj Auto, TVS Motor or Hero Honda are attractive investment opportunities at this point in time."Source:CNBC-TV18.

1 comment:

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    CapitalStars

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