Look at Hero Motocorp, says Sachin Shah

Sachin Shah of Emkay Investment Managers told CNBC-TV18, "We have been investing in Hero Motocorp for a while now, so that is the first disclosure that I would like to make. If you see the last two-three month of volumes numbers coming in from the company they are fairly good. In fact there has been a pleasant surprise after the first quarter numbers whether the volume growth was almost down by 7-8 percent.""If you look at year-to-date (YTD) numbers it would be nearly flat. There has been a press release by the company recently where it talked about that they have sold almost one million bikes in this festive season. This is a fairly strong number. Not only that if you look at their second quarter results, they were also fairly good in terms of the profitability and which came not only from the higher gross margin which is the raw material benefit but which also came from, they had a better high realisation which means the product mix is getting better as far as the overall sales is concerned.""If you look at the valuations, they will be closed to what about Rs 150 of earnings per share (EPS) in that way in March 2016 itself which means such a strong franchise with almost 52 percent kind of market share in the domestic motorcycle market and profitable market share available at about 17-18 times the six months forward.""We do expect it to grow in the range of about 15-20 percent compounded for next 2-3 years. So, if somebody is looking at compounded return of 15-20 percent, Hero Motocorp does offer that kind of potential," he said.