Rahul Shah's 2 top bets in two-wheeler space

economictimes.indiatimes.com:

Rahul Shah, VP-Equity Advisory, MOFSL, says in the last two-three quarters, Hero numbers were disappointing plus the overall number, sales number, month on month sales are also not so exciting. My view is that with Harley's launch and the response, things should improve for Hero and that is reflecting right now in the stock price. But right now, if you have to buy any of the two-wheeler stocks, then Eicher and Bajaj remain our top bets in that space.”There is one space which has really been the massive outperformer of late and that is the hospital space. Why are hospitals doing well?In the last one year, year-and-a-half, a lot of defensives have gained.

In the last two quarters also, defensive plays have performed very well. It was consumer first, followed by pharma and obviously the hospital space has continuously been doing well. There is tremendous growth but one can still go on in this space and in the organised play.

We have four, five listed players and it could be more. There are seriously large players like Apollo or Fortis. There could still be growth in the entire sector as a whole.

A lot of growth still can continue and from competition from unorganised players, this could be a better bet. If I look at it overall, valuations are obviously stretched for a couple of them, but this space looks interesting. One should have an allocation in their portfolio whether for small or larger hospital plays.They say that if you want a view on Hero MotoCorp always go to somebody in Raamdev’s team. Why is the stock underperforming? How much of this new bike launch would be important for Hero MotoCorp because this is not going to move the needle?Two things.