Siddhartha Khemka’s top 4 two-wheeler and tyre picks in current market

economictimes.indiatimes.com:

Siddhartha Khemka, V-P, Head of Research (Retail), MOFSL, says “the passenger vehicle segment within the auto universe has been consistently doing well. But of late, we have seen good recovery especially in the festive season, where demand for some of the two-wheelers have been pretty strong and some of the niche players have reported good numbers like Eicher. But the foray into EVs is helping companies like TVS Motors to show a stronger growth. In the two-wheeler space in terms of valuations, Hero Moto continues to trade at a steep discount to something like Bajaj Auto and Eicher.”

How are you seeing this QSR space develop and how do you see this moving because the trend of burgers versus pizza seems to be continuing even as of now. Plus, you do have those factors coming in from food inflation at some point of time as well. So, overall, in this QSR space, anything that you find attractive or what are you looking at here?
Yes, definitely, there has been a case in the last few quarters where there is a clear-cut differentiation between the pizzas and the burgers.

The burgers have definitely picked up pace be it the Westlife or we have the Restaurant Brands, say Burger King, they have reported steady growth in terms of volumes compared to pizzas which are kind of struggling, especially if you look at Jubilant FoodWorks. The last time they refreshed their menu they did really well.

But in the current ongoing season, especially in an environment where you have the ICC World Cup going on in India, generally we have seen that the demand has been pretty strong for QSRs and that is also reflective in the demand that we have seen, the growth uptake for companies like Zomato and Swiggy.

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