M&M has target of Rs 750-800, says Prayesh Jain

Jain told CNBC-TV18, “M&M is a very nice story, we like the stock considering that it has a substantial exposure to utility vehicles (UV's) and its automotive segment is doing pretty well, it’s been growing at more than 20% year on year rate for quite a few months now.”

He further added, “There is some slowdown on the tractor side. We’ll wait for the monsoons to unfold before taking a firm call on the tractor side of the business because the tractors have been disappointing with more than 10% declines for the last few months. So that has been a cause of concern on M&M and that’s the reason the stock has been under some pressure for some time now. And the sanguine on the recovery is also not been seen as was earlier expected. So there is some pressure there but the stock still can be a hold for target price of around Rs 750-800.”

“Ashok Leyland - the commercial vehicle space has been under ups and downs, the infrastructure activity has not been picking up, and mining activity again has been on the lower side. Today again we see some news articles that Orissa might put a cap on Iron Ore mining. So there are substantial pressures in terms of commercial vehicle. So we don’t see Ashok Leyland doing that great and we have a market performer rating on that stock as well.”