Bet on Bajaj Auto, Tata Motors: Deven Choksey

Deven Choksey, MD at KR Choksey Shares and Securities told CNBC-TV18, "In case of Bajaj Auto, I think what one has found is that in this particular quarter, the amount of realisation that they have got is about Rs 7,000 more compared to the corresponding quarter of the last year. If you compare on a sequential basis then it is about Rs 3,000 per unit more realisations that they have got."

"I think they have got a very sizeable amount of increase in the realisation, one of the factors for which they have got this incase is largely to the depreciated rupee. We must understand that they have hedged their currency even for this particular year at 60/USD, so any fall if rupee appreciates and if it moves below 60/USD levels, they still don't lose anything," he added.
"At the same time, the company would stand some chance on the depreciating side even though they may have to provide for some mark-to-market for the hedges they have done. So, overall Bajaj Auto looks promising because of the ability to garner higher prices. At the same time, the volume front because of the new launches promises to have better run comparatively. So it would remain positive. Whether one would buy immediately, I would say in a corrective market, one should accumulate this stock."
"Same should be the situation with Tata Motors. Of course the larger contribution comes from the Jaguar-LandRover (JLR) portfolio and the new model launches in JLR portfolio is certainly driving the sales growth for this company across the world geography. So from that perspective, one gets good confidence and along with that if you get Indian markets, with the lower interest rate on the autos and with the kick-starting of the infrastructure project implementation even mining businesses, to an extent you would have confidence in domestic market portfolio for commercial vehicles. So both these stocks seems good, corrective downside should be further used to add them into the portfolio of the investors."