Buy Maruti Suzuki, M&M: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "Provided you had moved out of Maruti Suzuki which itself is a tough call but with the festive season gone and nothing much has come out of it. Very clearly, all hopes are now pinned on this new Pay Commission hike. If that were to be any solace, yes, the companies could start getting some juice." "What is worrisome now is the commercial vehicle cycle also seems to be peaking out and my worry is coupled with the Chennai floods. Ashok Leyland is a tactical short at this point in time, I love that company. There is nothing fundamentally that says it has gone down, but you could probably see it move down because it will not be able to match up with the inventory management in terms of upkeep with the dealers. So, the dealerships are already clambering for supplies. They have got impacted just by their units, but people like MM Forgings which supply to them and stuff like that, they have also got impacted," he said."A lot of labour has not come back because of issues. People are still striking trying to get loans and things like that for rehabilitation, so people have been taking leaves. We have done some channel checks. People who supply to Ashok Leyland also have been told very clearly that the next three months, just take it easy.""I think that is an auto stance and the same thing is happening with this National Green Tribunal (NGT) thing still, of course, it is getting slightly more robust in terms of a battle. So, hopefully today, there will be some semblance of a logical reasoning that will come out of the Supreme Court discussion with Mercedes and Toyota also putting Mahindra and Mahindra.""If there is any surprise, it would be M&M. If anything positive comes out because all negatives are discounted, if they come up with some announcement on the petrol engine launch or a smaller vehicle launch, that could probably be a good bet. At this level, or even lower levels, you could probably buy Maruti as well as M&M," he added.