Jigar Shah, Sr VP and HOR at Kim Eng Sec India told CNBC-TV18, "We like two stocks in the four wheelers. One is Maruti Suzuki India because we think the valuation has become very attractive following the recent event and the numbers are still good. The company’s earning profile is boosted with better margin in the past few quarters. We like Tata Motors because of JLR in particular and the valuation there is very attractive."
"In the two wheelers we prefer Bajaj Auto over Hero Motocorp and we think the January numbers which came for Bajaj Auto were quite good. The company signaled domestic recovery after long time and if this continues it will be very interesting to see because Bajaj Auto trades at about 20 percent PE on a discount to Hero Motocorp," he said.
"In the auto components space we like Exide Industries. We think the valuation is beaten down and if there is a overall recovery in industrial as well as automotives sector then Exide would be a big beneficiary, there is a big operating leverage and its always been a good company with market leadership now trading at 11-12 times next years earnings excluding the value of investments on its books."
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