Hero Motocorp top pick in auto space: Religare Capital

Hero Motocorp is a top pick in the auto space, says Manoj Singla, MD & Co- Head Product, Religare Capital Markets Ltd.

Singla told CNBC-TV18, "Our top pick on the auto space is actually Hero Motocorp. We think the market has become too bearish in terms of the rural demand slowdown. While we do think that rural demand is slowing down, we do not think that there is a complete collapse."
He further added, "I think there will be positive surprises on volumes on two wheelers over the next two-three quarters. Secondly, we think these companies will surprise positively on the margins. I think even on the conference call Hero Motocorp came and said that they see substantial increase in margins in the coming quarter. So I think Hero Motocorp is something one should be looking out for a 12 months view."