Prakash Diwan's view on Bajaj Auto

Diwan told CNBC-TV18, “The expectation was that the numbers could be possibly much lower than Rs 700 crore on the profit side but the numbers have been much better than what the street was discounting till yesterday. So most of the sell-off, which was to happen was happened yesterday. So there is not much that people would want to move out of."

He further added, "So I think at these levels, it definitely is a compelling valuation given the other peer player, Hero Motocorp, which would have results tomorrow. It is likely the valuations are stretched. So I think people would prefer to stay in Bajaj Auto and believe in the management guidance that the things would improve further on.”