M&M good medium term bet, says TS Harihar

M&M is a good medium term bet in auto space, says TS Harihar, ICICI Securities.

Harihar told CNBC-TV18, “Bajaj Auto and Hero MotoCorp, both these stocks have rallied quite a bit over the last probably couple of months and I would believe that it does warrant some caution. The kind of appreciation that they showed probably was not warranted with the kind of fundamentals in the numbers that we got to see on month on month basis.”

He further added, “If you are looking at medium-term bet, probably Mahindra and Mahindra still makes sense but I would agree that the two-wheeler space is something you need to be a little cautious about.”

M&M is trailing 12-month (TTM) EPS was at Rs 43.36 per share. (Jun, 2012). The stock's price-to-earnings (P/E) ratio was 19.63. The latest book value of the company is Rs 197.18 per share. At current value, the price-to-book value of the company was 4.32. The dividend yield of the company was 1.47%.