Auto analyst Jay Kale bets on these two stocks
Jay Kale, Senior VP-Research at Elara Capital discussed the changing trends in the automotive sector and his preferred picks in the two-wheeler and passenger vehicle spaces.
Jay Kale, Senior VP-Research at Elara Capital told CNBC-TV18 that he prefers TVS Motor Company over Eicher Motors in the two-wheeler space and Maruti Suzuki in the passenger vehicle (PV) segment.
Kale pointed to TVS Motor's encouraging VAHAN retail growth numbers for December. According to him, these figures not only reflect positively on TVS Motor Company but also signal a boost for the entire industry.
He also talked about the challenges faced by Royal Enfield in December, predicting potential tests ahead as competition intensifies with the ramping up of capacities in this segment.
Also Read | TVS introduces custom built bikes, aims to create 500 premium biking touchpoints by end of 2023
In the passenger vehicle space, Kale pointed to the strong growth in the SUVs segment for Maruti Suzuki, and the potential upswing in the entry-level car segment, which could further support their volume market share.
While currently, the revenue market share exceeds volume market share, Kale is confident the entry-level segment's stabilisation would provide additional support to volume share.
TVS Motor stock has gained close to 49% in the past six months. However, year to date it has declined around 3.5%. Shares of Maruti have also had muted year to date performance, declining a little over a percent, and six-month gains at around 5%.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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