Raamdeo Agrawal, Joint MD at Motilal Oswal Fin Svcs told CNBC-TV18, "Hero Motocorp has been in my 15-17 years holding. I have not bought anything, I have not sold anything. Honda is gaining market share every month. Initially, it was thought that they will gain market share at the cost of Hero Motocorp, but I think the story is very different. In 90s it was from scooters to motor cycles. Now market share is more balanced between motor cycles and scooters. In that process Honda has been the forerunner and with their Activa launch they have become very prominent."
"Hero is the second largest player in scooter, so Hero is very well positioned between mass market motor cycles and scooters for urban market. We are seeing lot of tie-ups which are going to give them competitive edge in terms of fuel efficiency particularly. So it still looks to be a good investment idea," he added.
"They will stop paying royalty after six months, so in 2014-15 they will certainly looking big blast. It is available at 13-14 times, so it should be a good bet for the people who do not have the share right now."
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