Like Maruti, Hero Moto may test Rs 2800: Mahantesh Sabarad

Mahantesh Sabarad, Deputy Vice President - Research at SBI Capital Securities told CNBC-TV18, "A disclaimer, Hero MotoCorp is something that I own. The company is going to announce its results today. Backed by small degrowth in volume, there has been a degrowth in volume for the quarter under consideration for the previous year. They will still have an opportunity to better profits or lesser shrinkage in profits simply because of the pricing growth that we have been able to see. So, for us the stock will at the bottomline report something like Rs 740 crore PAT which will still be 3.3 percent degrowth despite a 7 percent drop in volume. So, that is what we are looking at." "As far as the other automobile space is concerned, some of the other stock that we like are Maruti Suzuki. We think Maruti has been doing consistently well in terms of its market share presence and the new products that they have been launching off-late. So, there has been a substantial improvement in their average selling prices and hence a superb growth that we see on the revenue front as well as the bottomline front for the next two years. My price target on Hero Moto is Rs 2,800 and Rs 5,100 for Maruti," he said.