IndiaNivesh’s Mayur Milak is bullish on this two-wheeler stock

The auto sales data for the month of December is due on Wednesday. Many market observers expect good numbers as the discounts continue to remain high although the festive season is long over.

Says Mayur Milak of IndiaNivesh Securities: “Our channel checks suggest that discounts continue to be high. However, December technically is always a lower month for dispatches. So as far as sales from OEs are concerned, they usually have lower dispatches because it’s a change of year for registration and they don’t throw out a lot of inventory in the system.”

“We are bullish on Hero Motocorp. We believe the base effect will come into play. Last December, the dispatches were only about 458,000 odd. So even if they end up doing similar dispatch of what they did in November, it looks like 10-12 percent kind of jump YoY and the kind of correction that has happened in the stock price, we think it’s a great price to look at Hero from these levels,” he said.