Prefer Tata Motors, Motherson, Hero MotoCorp in the auto sector: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities, shares his views on auto sector. Excerpts:

ET Now: One stock from the auto space which has really broken out of the pack is TVS. It has gone from 50 to 250 and now everyone is bullish on it. Do you think there is still money to be made in TVS because suddenly, that is one company which is doing all the right things?

Mehraboon Irani: At the valuations at which the entire space is, we would possibly look for wealth creators. TVS Motors has had a dream run, no doubt about it but where you mention TVS Motors, I look at TVS Suzuki which it once was. I look at the price it was, price it fell down, now it has gone up. At this price from a trading angle, answer would be yes but at present valuations I was coming to, we are looking at stocks which will remain wealth creators which should be a part of investor’s core portfolio because valuations on the whole are rich and in the two wheeler space, we have only one stop and that is Hero Moto, very rich in balance sheet, we all know it. A promoter possibly who understands the business better than most, the others also understand, it is reasonably well including the Bajaj and the TVS Motors, I am not saying no but at 2700-2750, I am not going to lose my sleep on even when the market corrects. So for stocks like TVS Motors, the momentum is in its favour. So in the shorter term, possibly it could outperform a Hero Moto or even a Bajaj Auto. But from a longer term, the stock which should be in investor's portfolio as I mentioned in four wheelers we like Tata Motors and Motherson, in two wheelers, I would have a Here Moto.