On Moneycontrol Messageborad, boarder Ramakant Pattanayak asked about the outlook on Hero Moto for the next six months.
Replying to his query, Kenneth Andrade, Head-Investment, IDFC Mutual Fund, said it is a fairly mature category and he would not expect anything dramatic to happen from these companies at least in the near term or even significantly into the longer term.
“We need to look at companies that could mobile to new markets and get their sales upwards, companies that get new products on the ground and get their pricing power up,” he said, adding that these are things that one should look before buying into these categories.
“Mature markets will not give you the kind of returns that you historically got from this particular category. So if you are looking for returns based on what the category has given you historically, I think it will be slightly misplaced because categories (two-wheeler / auto) like these are usually the first ones to effectively mature out and become significant in the economy,” he added.
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