SP Tulsian positive on two-wheeler stocks

SP Tulsian of sptulsian.com told CNBC-TV18, "I have been keeping my positive views on two wheelers. In fact if you really see 1 million tonne sales in those 35 days, the press release which has been given by Hero Motocorp, actually those who have been cautious or may be negative views they have all been talking that replacement market or the demand for two wheelers has all exhausted.""Practically everyone is owning two wheeler in the country, so there won't be so much demand. However, if you can see 1 million tonne getting sold by one player and you combine all other two wheelers in one category, may be Bajaj Auto must have sold 4 lakh - I am taking 35 days, may be TVS Motors must have sold 3 lakh and then Honda which is again an unlisted player - 1 million that category, 1 million Hero Moto alone, if you can sell 2 million still. Now talk of the discretionary spending and all that, one cannot afford to have the car, at least he will go for two wheeler.""Thirdly, if you really see the kind of Mumbai city, I have not seen people find it more though it is so risky, if you are driving in the car you really pray for them always but if you go into the other cities may be tier I, II, III, I am talking all, earlier we used to say that two wheeler is a vehicle for tier II and tier III cities, I don't think that you can really live in tier II, tier III without having a scooter and that too one person one scooter," he added."In fact I happen to visit so many places may be tier III and tier IV cities in this last one year. So, if you have 5 family members probably you may be having 6 two wheelers. So, this is the kind of demand which we have been seeing. Lastly relative valuations or may be the corrected valuations now which we have been seeing practically of all the stocks, may be Bajaj Auto, may be Hero Motocorp, we have seen the Hero Moto taking a big beating, may be post the numbers and all that, their sales numbers were really very bad for some months in Q2.""So taking all this picture I don't think that the demand for two wheelers will really taper down or will go down, you will have replacement market, people will have aspirations, they keep changing the model. The way people change the cellphone, people have started changing the two wheelers also.""I will go first with TVS Motor, then followed by Hero Moto and then third by Bajaj Auto. Bajaj Auto largely because they have export of about may be 1,50,000 vehicle, sometimes more specially in Nigeria and Sri Lanka. Nigerian government and the behaviour and the abrupt decisions, so those things goes haywire. I am not saying those things will get repeated but you can't take a comfort also on both the markets - the Nigerian as well as the Sri Lankan market where they have a strong presence. So, if they would not have had 1,50,000 vehicles getting sold in the export market probably my comfort would have gone more on Bajaj Auto. First my preference would be on TVS Motor then followed by Hero Moto," he said.