Bullish on Bajaj Auto: Rajan Malik, MF Global

Rajan Malik, Head Equities, Private Client Group, MF Global, in a chat with ET Now, talks about certain Bajaj Auto


You spoke about interest rate sensitives and probably staying away from that but I believe you are positive on ICICI Bank and Bajaj Auto.

We were looking at two timeframes, one for the shorter period and one for the longer period. Let’s say from a year’s perspective. We clearly like the domestic demand story, and we believe that the two wheeler segment, especially Bajaj Auto is likely to do better than the four wheeler segment. That’s why we like a Bajaj Auto over the rest. Surely there would be input cost constraints and being interest rate sensitive, two wheelers might probably get hit a little less than the four wheelers. An ICICI Bank given its current performance and given the fact that it is just trading just over two times book will provide us the kind of entry levels, maybe just under two times for a very decent return over the next 1-1.5 years.