Phani Sekhar of Angel Broking told CNBC-TV18, "Hero Motocorp has done well over the last one year. TVS had a strong presence but Hero has gained market share there and that is quit interesting. In the mid executive segment, in the bikes it has retained and slightly grown its lead over Bajaj Auto and it has gained a lot of this market share in the motorcycle segment at the expense of Bajaj notwithstanding the competition from Honda."
"All in all even in a tough market it has been showing respectable growth in volumes due to diversified product mix and export although very small in comparison to its overall sales are also expected to grow at a very high pace albeit on a lower base although valuations are on the higher side at around 16 times but since one is expecting a bottomline growth of 20-22 percent over the next two years that is CAGR, these valuations can be justified and they can grow especially when Bajaj Auto continues to struggle over the next one year or so. So this is one story that investors should bet on," he added.
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