Prefer Eicher Motors for investment: Mehraboon Irani

Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "From a very short angle, it could be TVS Motor because the scrip had not performed all that well over the last 3 months and had just picked pace, but from an investment angle, I would like to prefer Eicher Motors at number one, but considering the traction we are seeing in this particular sector, the two-wheeler sector, I would possibly go with auto ancillary stock which is Lumax Auto Technologies. It provides tubular parts for the two-wheeler and the three-wheeler sector and looking at the traction. I am quite confident the number should continue to be good, more or less a debt free company, small equity of around 14 crore. I think this company’s earnings in the current year is expected to be around Rs 32-33 but around Rs 40 is possible in 2017-18.""If you give it a PE of even 15, Lumax Auto Tech has all the way gone up to Rs 600 from the present Rs 425-430 which is a clear appreciation of 40-45 percent. In the sector Rane Brake and Jamna Auto have move 50-70 percent over the last 2-3 months and this stock for reason has been a laggard. This stock because of a small equity base possibly could be a smart outperformer from here on at least for the next 3-4 months," he said."BHEL was a stock which I had mentioned, when virtually everybody on the street was talking very negative about, because as far as I understand the transformer sector of BHEL possibly is the best performing among all the transformer companies right now.""I think BHEL after the run from Rs 120 to Rs 165-170 onwards looking at the numbers, post the numbers there is a correction in the stock and possibly around Rs 140-145 levels. It could be worth a look in because if you understand the power sector reforms and if you believe that this company gets a large part of the revenue from the power sector, this is the stock which could possibly look at favourably if we have another 5-7 percent correction coming in the stock price."