Buy Bajaj Auto on dips: Sandeep Shah

Buy Bajaj Auto on dips, says Sandeep Shah, CEO, Sampriti Capital.

Shah told CNBC-TV18, "Within two-wheelers we have always been bullish on Bajaj Auto and that is a stock which has done exceptionally well given its business model, given its incredible focus, given the fact that it has a really aggressive focused CEO who knows exactly what he wants to do even to the point of exclusion of scooters which currently seems to be a growth market. So Bajaj is an obvious stock to own and add on dips."
He further added, "Besides that of course there is a case build for both Mahindra & Mahindra (M&M) as well as Maruti Suzuki given that the worst in Maruti is over and there is a possibility that you could see a fairly high, strong earnings rebound in Maruti next year especially with the fact that interest rates have softened a bit in the last couple of quarters largely because of poor demand and offtake of credit and there is a no reason to believe that interest rates will not go down maybe another 50-100 bps over the next 12 months."
"M&M is another interesting stock given the fact that they have done phenomenally good job in terms of gaining market share in passenger cars even though the vehicles have been more of SUVs and they haven’t come out with a sedan or any other such car but I think that’s also the fact that they have played to their strengths and that’s actually worked for them very well and also given the fact that the rabi crop is expected to be good there is likelihood that tractors sales which have been performing poorly for Mahindra you could see a bit of a rebound there."
"These would be the three stocks but Bajaj Auto would be the safest stock to own and M&M and Maruti could be stocks that you could look on buying on dips because December car sales even two-wheeler sales won’t look that good because November numbers are going to look pretty good because you had Diwali there and you didn’t have Diwali last year, so there is a chance that December numbers may not look too good and I think that could be a buying opportunity."