M&M looks good, says PN Vijay

M&M is looking good, says PN Vijay, Portfolio Manager, askpnvijay.com.

Vijay told CNBC-TV18, “One should put M&M on your watch list to buy. The stock went through carnage down from about Rs 950 if I recollect not too long ago all the way to close to almost Rs 800 due to the general negative feeling about the auto sector. This news coming from independent sources that we are going to have a good monsoon is obviously the trigger which has forced lot of short covering. If that is the case and as you know in the utility vehicles they are showing a smart movement in the otherwise desultory auto space and they are not into heavy commercial vehicles.”
He further added, “Things are going positive for them and if one were to work on the assumption that the monsoon will be good then one could probably start nibbling away, but better still is to wait for the results and even if you pick it up a bit higher at Rs 910-915 you go for that, because if the results are really terrible you might get a dip in the stock.”