Prefer M&M over Escorts in the auto space: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, VP, Institution, Angel Broking, shares his views on Escorts. Excerpts:

ET Now: I want to pick up Escorts with you and the kind of dismal performance they have posted this quarter?

Mayuresh Joshi: Yes, the dismal set of numbers and clearly the street was expecting a bad set to come through but it is much worse than even what we were expecting. So clearly the stock will react negatively on that side but if you see the trend specifically on the farm equipment side and tractor business even M&M’s haven't done that great. That is the reason why you have seen the operating margins of even the company like M&M drop to close to 12%. So our take is that it will take some time for the revival probably to take place but again we think within the space itself if you want to take a holistic view M&M probably on declines would probably be qualified to be a much better bet rather than Escorts at this point of time.