Mujal Showa may touch 245: Anil Rego, Right Horizons

Anil Rego, CEO & Founder, Right Horizons, in a chat wit ET Now talks about auto ancillary space and Munjal Showa.

Is there anything from the auto basket, auto ancillary space that you would recommend buy on at this point in time?

We prefer the auto ancillary space at this point of time. Munjal Showa is on our buy list. Because of the Hero Honda JV coming apart, there will be a greater focus on Munjal Showa being one of their larger entities within the Hero Honda Group.

Also, there are a lot of bikes on the road of Hero Honda. So auto ancillary can become an annuity business with the parts your business doing pretty well there. So in Munjal Showa, I would suggest a price target of 245 probably over a longer period of 12 months. We have liked some of the larger names in the core auto space them but today some of them like M&M, which we were very bullish on, have run up quite a bit. So I would take a little easy at this point of time on core autos.