Shashank Khade, Executive VP & Head - PMS, Kotak Securities shares his view on Hero Motocorp and Bajaj Auto .
Khade told CNBC-TV18, "Auto numbers, more than the quarterly numbers, I think the perspective on volumes going forward is quite crucial. Given the fact that by the end of the quarter you actually started seeing sluggishness in volume growth."
He further added, "The volume growth going forward will be quite important to really look at because clearly from a stand point of slowdown I think the two wheeler segment really got impacted towards the fag end. So one has to really see what the lagged impact of demand slowdown is on both these companies Hero Motocorp, Bajaj Auto and I think the next month or two volume growth will be extremely important. All these numbers by and large have been factored in and people have really gone to FY13 and discounted a higher number and that's the reason why the valuations have been higher than the average what these companies were trading at. So, I think next couple of months remain quite crucial from a growth perspective and I think that will decide the valuation band in which these stocks should trade at."
