Bullish on Hero Honda: Radhika Gupta, Forefront Capital Management

Radhika Gupta, Director, Forefront Capital Management, in a chat with ET Now talks about Hero Honda.

Are there any possible blips, any road bumps ahead that we might see in Hero Honda?

The only road bumps ahead with auto stocks remains capacity problems and rising input cost. Hero Honda has historically done a good job of maintaining margins for improving capacity at its plants by cutting SG&A cost. So it has struggled less with rising input cost but that is really the one bump we will see.

Otherwise sales in Hero Honda were above our expectations. Market share has remained pretty steady in comparison to the two other guys in the market. So we remain bullish on it.