Dipan Mehta says: "The best two-wheeler company in our opinion should still be Eicher Motors and we are a bit disappointed with their monthly numbers for the two-wheeler sales. It was well below our expectations but that could be a minor aberration. But in the medium to long term we do feel that Eicher Motors will be able to gain ground and grow on a consistent basis purely on account of its product profile, expansion of its distribution network and the huge export opportunity."
Nifty and Sensex are likely to continue their upward trend due to a concentrated rally in select stocks. However, the concern in the market now is the excessive valuations in the mid and small-cap segments
“Take some profits off on companies where price to earnings multiples are beyond 50-60 times trailing 12 months could be private sector defence contractors. It could be some of the newly listed stocks as well which are engaged in different businesses trading at very rich multiples. You could even consider adding specialty chemicals to that list where trading multiples are quite rich.”
Considering publically-available data with bourses, LIC s equity portfolio has risen by about Rs 80,300 crore to Rs 11.7 lakh crore now. At the end of the September quarter, LIC s equity portfolio was estimated to be worth around Rs 10.9 lakh crore, shows ACE Equity data.
“A very strong premiumization trend playing out in the auto industry and even if volume growth is high single digit, the actual revenue growth is transiting into mid-teens or even higher because the average selling price of the models across the board in all the segments including tractors is going up. The next few quarters look very exciting for the auto industry.”