Immense possibilities and positivities from Eicher Motors tractor verticals: Gaurang Shah, Geojit BNP Paribas Financial Services

In a chat with ET Now, Gaurang Shah, Asst VP of Geojit BNP Paribas Financial Services, shares his thoughts on Eicher Motors. Excerpts:

ET Now: Eicher Motors is already at 8000. Is it part of your core portfolio and would you recommend it to clients?

Gaurang Shah: We had earlier recommended this particular stock in our portfolio. At that time, it was quoting at about Rs 4000 or Rs 4200 and it has almost doubled. But the bright side is that re-rating has come into this particular stock and my anticipation is that Enfield - two wheelers business vertical for Eicher Motors - has contributed significantly. If one is expecting uptick in the CV segment and HCV segment, then it augurs well for Eicher Motors. Thus, one can take a small exposure at these levels. Wait for a correction and add to it more. We also believe that the tractor business is going to augur well. There are problems of monsoon deficit, etc, but if you are looking at longer term picture, there is going to be immense possibilities and positivities from the tractor verticals as well.