See a 3-4% volume growth for Bajaj Auto in normal monsoon conditions: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking shares his views on Bajaj Auto and Tata Steel. Edited Excerpts:

ET Now: Bajaj Auto and Tata Steel let us start off with that.

Mayuresh Joshi: The drubbing that we had seen in Bajaj Auto over the past few months reflected in the positions that you are talking about. If you adjust the numbers on the EBITDA front, the margins again come back to 18.9%. It is a story which will now unfold on how the management is looking at carrying forward its sales and what kind of warrants are probably expected to come through both on the discover side as well as what happens with Platina.

Having said that, the monsoons will be a determining factor for the volume growth. Our own take is that a 3%-4% volume growth should hold out for Bajaj Auto unless the El Niño effects intensify and there is a huge amount of dent that we see in rural demand. Again, the exports markets is something that we must also understand from the management on how it is panning out. The markets in Sri Lanka, Nigeria probably be hit by the currency headwinds that it face there. But clearly what will happen in Latin America is something to be watched out. We do believe that there is a decent amount of value there, but not excessively optimistic on the stock. We do have an accumulative rating on the stock even from the current levels.