Betting on TVS Motors, Berger Paints: Sharmila Joshi

In a chat with ET Now, Sharmila Joshi of sharmilajoshi.com. says TVS Motors margins are expected to go up over next three or four quarters. Edited excerpts


ET Now: Walk us through the first stock idea?

Sharmila Joshi: I will recommend TVS Motors with the target of Rs 415. We should see good demand going forward once the festive season sets in. The dual impact of both the monsoon as well as the Seventh Pay Commission will show in two wheeler numbers.

In any case, TVS Motors has been giving very good sales numbers these last couple of months and all the two wheelers are likely to have an excellent festive season and TVS Motors impact has indicated that they could outpace the rest of the market.

As for their partnership with BMW, in the last quarter of this fiscal year, we will see the product that is a result of that partnership. so we have not seen really any of that positive getting factored into the stock. Probably the only negative for TVS Motors is their margins but again the management has said the margins will go up over the next three or four quarters.

ET Now: Why do you like Berger Paints?

Sharmila Joshi: The next stock I like is Berger Paints. This I recommend with a target of Rs 315. Once again I think this is a play on a little bit of the festive season and the fact that post monsoons, you are likely to see a good pickup within the space.

So a buy on Berger Paints largely because you will see a good festive season. In any case, they have increased their market share. So that is also in their favour and lastly they are just sort of building on the strong operational performance that they have been showing this year. So those would be the two stocks from my side.