TVS Motors not recommended at this point of time: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on TVS Motors.

ET Now: Do you like TVS Motors as a story?

Harendra Kumar: Not at this price point. The stock has run up significantly and the big basis for this was its overseas partnership that was heard of but at this prices we are not able to justify the valuations.

ET Now: The EPS estimate for FY15 is about Rs 8.5, Rs 8.5 divided with the current market price it is 12-13 times?

Harendra Kumar: So you will also get Hero MotoCorp around that price point which is a global leader in two wheelers and in the monthly numbers Hero has posted very good numbers plus their scooter portfolios come along very well.

You have a big trigger in terms of the export market and the economic recovery that is coming up. So in terms of leadership clearly Hero is available at much attractive valuation then the rest of the two.