Investors bullish on the auto space: Sajiv Dhawan, JV Capital Services

Sajiv Dhawan, MD, JV Capital Services, in a chat with ET Now talks about Hero Honda and the auto stocks.

There was news coming out earlier about Hero Honda and how they were perhaps falling back on their targets because of shortage of spare parts. How would you react to news bit like that coming out from a leader in the two-wheeler space?

The stock had a fantastic run up in the last one year. Stocks which we prefer - Bajaj and Hero Honda – have gone way beyond price targets. Valuations wise they are not may be as high as they could be but sales growth has to continue at that sort of pace which has been going over the last several months to get them back current premium rating.

The results of stocks like Tata Motors, Maruti will be very very closely looked at because the sector is still a darling of lot of investors in the market. It has made them a lot of money. They are very bullish on the sector over the next 6 months or so. But personally, I would go a bit light and I would prefer to may be lighten up on any rally on these stocks.