Buy TVS Motors: Vivek Mavani

Vivek Mavani, Vice President-Institutional Equities, Brics Securities, talks to ET Now on TVS Motors stock.

What is the call on TVS Motors?

I would sense that TVS Motors to be better bet at current levels because the same factors which helped Hero are obviously going to be helping TVS Motors that is number one. On robust volumes, price increases and softening commodity prices helping improve margins. Our institutional equities has a buy recommendation on TVS.

In case of TVS, the delta on softening commodity prices and hence incremental profits is much higher. Secondly their Indonesian operations which until last year has been losing money, this year is likely to breakeven and perhaps next year start churning out some profit so that just the losses which are going to be saved the earnings impact is going to be much larger in case of TVS. So, our preferred bet in this space is TVS.