Bullish on Hero Motocorp: Sajiv Dhawan

Sajiv Dhawan, MD, JV Capital Services, talks to ET Now on Hero MotoCorp.

What’s your call on Hero MotoCorp?

Hero MotoCorp is a stock that we like. We have been quite bullish on the auto pack and two wheelers, especially over the last several months because they are relatively insulated.

They have posted continuously good sales figures. There are a lot of pressures on these companies but, somehow they are still managing to beat expectations of the market in quite difficult circumstances.

I know the concerns will now again crop up that interest rates are again likely to go up and there will be some further pressures on their margins. But, considering this is pretty much a worst case scenario for a lot of corporates out there, companies like Hero Honda will be rewarded and on any significant correction of the stock prices, you will see a lot of investors try to get into the stock.

Even next year when interest rates start to finally calm down and inflation hopefully comes under control, it could be one of the major movers next year.