Play auto theme with four-wheeler stocks; CV space looks good: Amit Khurana

In a chat with ET Now, Amit Khurana, Co- Head Equites & Head of Research, Dolat Capital Market, shares his view on the two-wheeler space.
ET Now: Two-wheeler makers are in focus this week. Hero MotoCorp has come up with a splendid set of numbers. Bajaj Auto will release its earnings later in the day. How are you monitoring this space? What is the pecking order? What did you make of the Hero numbers?

Amit Khurana: Hero MotoCorp's Q2 numbers did surprise us, especially on the margins front. The company was able to manage the product mix much better than the Street's expectations. To that extent, credit must go the management.
But, if you look at the next couple of quarters, the potential for an expansion in margins from here onwards seems to be pretty limited.
We are looking at margins close to about 16 per cent, which could be four-five year high, if my memory serves me right. So from here onwards, the delta on the margins will probably be limited. It is more of the volume growth.
We will have to wait and watch as to how the festival season pans up for the two-wheeler makers. But in general, from a macro perspective, we prefer four-wheelers. That has been our preference to play the auto theme. So we prefer four-wheelers to two-wheelers. Among four-wheelers, we like the commercial vehicle (CV) segment.