Look at Eicher Motors, says Gautam Sinha Roy

Gautam Sinha Roy of Motilal Oswal Mutual Fund told CNBC-TV18, "I hold Eicher Motors. Page Industries I have held in the past and we have exited that. Eicher of course we will continue to like at around 30 times one year forward and with a visible earnings growth of 40 percent over the next three years. Where we deferred a lot from the street is that we believe that the run rate for growth in India for the premium bikes that Eicher does is really long and is going to be very strong for many years to come." "We have based on our analysis and we continue to believe that market is today not pricing in that clearly. So, while we don’t think that there is the case for price earning (PE) re-rating in Eicher at the current juncture, it is a fair price earning (PE). However, the earnings growth should give you a very good compounded return in the years to come. The optionality value there comes largely from the CV business, the commercial vehicle business taking off with a cyclical recovery in commercial vehicle," he added."Partially from the fact that they are taking that product offering which is a mid range bike to other countries, emerging market countries like South-East Asia , Latin America, so there could be some growth upsides coming from those geographies in the distinct future too. We continue to like the stock very much," he said.