Gautam Chhaochharia of UBS says the market has reacted positively to forecasts of a good monsoon and the impact of monsoons on actual rural demand can be seen only post monsoons.
He continues to be underweight on two-wheelers as the industry structure remains unattractive, the incumbents' product portfolio is not geared to growing parts of the industry and a low operating leverage business model is implying no material impact of volumes uptick on earnings.
He has a buy rating on Maruti Suzuki and Mahindra & Mahindra. Chhaochharia says his preferred picks on the monsoon theme would be Coromandel International and Emami.
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