Rajat Sharma, Founder & CEO, Sana Securities, says “real estate has a very long cycle. Once they do become the flavour to be bought, then the stocks move up really sharply and that typically happens in the post-correction period of the market. Right now, I do not think any investors are going to get attracted to real estate.”
The auto numbers for March were rather disappointing. What is your top bet within the auto sector – be it the two-wheeler space, passenger vehicles, or commercial vehicles?
Rajat Sharma: I think the only number that was disappointing is Hero Motocorp’s, where the overall sales were 8.6% down. But again, the silver lining there was that export sales were up by a mile actually. And it is very difficult to say the reason why sales dipped. Just to give you a disclosure, I hold Hero Moto and I have been consistently recommending the stock on your show. I really like two-wheeler space and I have recommended buying this stock.
But quarter-on-quarter, they did not manufacture enough, they did not advertise enough because Bajaj Auto sales are 25% up. So, difficult to say. I really like the two-wheeler space although at this point a lot of stocks are a little overvalued. I bought them at a price far below where they are trading, 2600, 2800 for Hero Moto is where I got in and recommended the same.