Prefer Atul Auto with five years view: Basudeb Bannerjee

Basudeb Bannerjee, AVP-Research at Antique Stock Broking told CNBC-TV18, "You have three wheelers a part of overall business like that of TVS Motor Company or Bajaj Auto and the best case study should be Bajaj Auto where if you look at decades of being in that business, now at a certain scale you are operating at anywhere between 25-30 percent informally."

"So, we are confident that Atul Auto when they reach that kind of scale courtesy the kind of entry into petrol model which will give them leeway in the export markets and for Bajaj Auto more than half of the volume comes from exports. So, definitely the trajectory from this 12-13 percent margin up towards 20 percent will be the order of the day in next five years," he said.

"From valuation perspective in the near term Atul Auto moved up quite a lot but definitely this is a very secular play and not a very cyclical play. So, from a five year investment horizon this is a very good stock to be in."