Four wheeler industry looks more attractive than two wheeler space: Sandeep Singhal

In a chat with ET Now, Sandeep Singhal, Co-Head Institutional Equities, Emkay Global Financial Services shares his views about auto sector.

ET Now: Do stocks like Hero MotoCorp and Bajaj Auto qualify as a buy at these levels?

Sandeep Singhal: Very interesting, in fact we are doing some primary research and the work is in process. We are checking the rural side of the story and how the consumption is panning out, how the farmer is placed now because mostly agri commodities pricing are softening across the board like grains or pulses. So in this kind of a scenario what would happen, the economic unit at the rural level would have lesser cash flow and there could be challenge in non-discretionary demand side. We have seen the demand of discretionary side declining and Titan have already taken a good hit. If this kind of a scenario pans out then definitely we would see a hit to two wheeler industry. So at this juncture without applying too much of a final print I would say that one should buy four wheeler instead of two wheeler.