Prefer Ashok Leyland, Hero Motocorp: Phani Sekhar

Phani Sekhar, Fund Manager-PMS at Angel Broking told CNBC-TV18, "In the auto space two-wheelers might be a better idea than four-wheelers although the investors can also look at commercial vehicle space. If the investor were to look at commercial vehicles then look at Ashok Leyland because one can look at 30-35 percent upside over the next 18 months as and when recovery starts in the economy, for a more steady return among two-wheelers I would recommend investing in Hero Motocorp because earnings are expected to be more stable since the royalty issues are out of the way, more diversified product mix and very importantly as they have shown over the last one year, they are pretty resilient as compared to their peers when it comes to volume growth, again valuations not very expensive."

At 15:22 hrs Ashok Leyland was quoting at Rs 51.25, up Rs 1.45, or 2.91 percent.