Bullish on auto stocks with international presence like Tata Motors and Bajaj: ICICI Securities

In a chat with ET Now, Ravi Muthukrishnan, Co-Head Research, ICICI Securities, shares his views on Bajaj Auto and auto space in general. Excerpt:

ET Now: What makes you bullish on Bajaj Auto?

Ravi Muthukrishnan: We are extremely bullish on Bajaj Auto as 42 per cent of their business comes from exports. The problem for them is that the domestic business is not doing so great. However, the export business of late in the last quarter has picked up very well.

Bajaj Auto has done a 15 per cent growth in that business. We are not very convinced with the domestic story as we have not seen the economic indicators showing any sort of revival which is a main driver of growth in the domestic business. The rural consumption and rural growth would bring in a pick up in most of these companies but that also seems to be not happening in a rapid pace.

For us when we talk about auto, we are only talking about those companies which have an international footprint. Therefore, we also have Tata Motors in that list.