Keep Eicher Motors, Hero Moto in portfolio: Phani Sekhar

Phani Sekhar of Karvy Stock Broking told CNBC-TV18, "We hold Eicher Motors and Hero Motocorp in our portfolios, so we have interest in both. They serve two very different segments. Eicher Motors is gaining because of the strong earnings growth that is quite possible over the next 3-5 years considering that the competition is very low in that segment."

He further added, "Hero Motocorp on the other hand while it has lot of competition also has a much wider market opportunity to serve. So to that extent on the balance depends on what kind of investor you are and what kind of returns you are targeting."

"Hero is low to moderate risk kind of an investment which will also give you stable returns. On the other hand Eicher because of the higher valuations and higher growth opportunity that is there is available at premium valuations and also to that extent will be more volatile. So it is the good idea for you to have both in your portfolios. They both serve different purposes," he said.