Pathik Gandotra of Dron Capital told CNBC-TV18, “Two-wheeler space should do well over the next 12-18 months. However, prices have still run up fairly far ahead of the numbers that one can expect from these companies. There have been a lot of inventories in September and people have reacted to those numbers. We have to see that inventories talk actually translating in to sells. That is the expectation that obviously the manufacturers have and if that is borne out then I guess yes, then you have a more sustainable kind of topline growth.”
“If you look at past 12 months, two-wheelers have gone nowhere, there is virtually no volume growth. So at some point in time whether this month or a few months from now, you will see demand picking up. The government has begun its spending, there is going to be election spending around January to March, there will be the wealth effect of the monsoon which will play out. I think these two things will ensure that there will be some revival in two-wheeler demand. So it is a good thing to play two-wheeler stocks, but one should be slightly cautious. Stocks have run up, I would look at buying all of these stocks only on corrections,” Gandotra said.
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