Stay invested in Hero Motocorp: Emkay Global

Sandeep Singal of Emkay Global told CNBC-TV18, "I am really enthused by the statement of Hero Motocorp on two counts, one, it would come out with about 10-12 new models or variants in the second half of this year."

He further added, "Second, it has said that it would reduce the cost to an extent that it would improve margins by about 400 bps over a period of time. In engineering span this kind of post deduction programs are doable because there are lot of inefficiencies where you will really scrutinize the processes and once you streamline them it is possible. Once it does that it would be a huge cost advantage vis-à-vis competition, so definitely thumps up by the market to this commentary and results."
"I would be positive in this stock and continue to remain bought in Hero Motocorp. This is one of our preferred pick also. Typically Hero being present in rural market where we see larger spending as compared to urban market. Also on the point of view of election you will see some spending in rural markets over urban markets. So it is our favourite and we are staying invested in it," Singal said.