Two-wheeler vroom priced in, says CLSA

Mumbai: CLSA has downgraded its ratings on two-wheeler stocks citing fair valuations after the recent run-up in prices. The brokerage said the 8% spike in two-wheeler volumes in the festive months (September-November) had resulted in a rally in the stock prices.

"We believe the upside in the stocks has reduced due to recent rally in stock prices," said CLSA's analysts Hitesh Goel and Rishi Kapadia in a client note.

"Hence we downgrade the stocks and turn cautious as valuations are pricing in double-digit growth in volumes over the next few years already."