Buy Motherson Sumi, Tata Motors; sell Exide: Sinha

Dhananjay Sinha, Head-Instl Research of Emkay Global Financial Services told CNBC-TV18, "TVS Motor Company essentially comes from our assessment of the impact of the rural demand on two-wheelers. Exide Industries essentially has been losing market share to Amara Raja Batteries. It has been gaining market share over the past few years. I think as a result of that, Exide is something that we have been underweight on and we have a sell on that stock.""Maruti Suzuki India essentially comes from the fact that it has been doing well with respect to passenger car vehicles, volume growth essentially has been concentrating in some companies and Maruti is benefited from there. Because of the declining commodity prices, Maruti has been able to capture that in terms of EBITDA expansion. In general the auto space generally captures that decline in commodity prices," he said."Tata Motors has been a top pick for us for several years. It has undergone a sharp correction since the time we have seen concerns on China. So the volume growth has been a concern and the stock has corrected a lot. We think that given the strength it has been gaining in the newer geographies, the fact that it has certain production capability that is ramping up in China itself, it is a good buy if you look at over the next one and a half years. That is why we have considered Tata Motors," he added."Motherson Sumi Systems is a very solid company and has a good visibility in terms of its strategy. So in the near-term there might be some correction but we think it is a good idea to buy the stock."