mumbai investors pinning hopes on a better monsoon to revive the rural economy are betting on twowheeler makers over four wheeler manufacturers these days money managers and analysts say shares of twowheeler companies look poised to outperform the auto index as a recovery in agriculture a key driver of the rural economy will drive sales of twowheelers and valuations are cheaper the twowheeler segment will be a natural beneficiary of a boost in rural consumption which makes us extremely positive on the segment said vaibhav sanghavi managing director of ambit investment advisors with the governments rural push and the possibility of a good monsoon there will be an increase in rural spends hero motocorp is the undisputed favourite among the analysts other top picks include bajaj auto and tvs motors the best play in this space would be hero motocorp as it will benefit the most from any increase in rural consumption said arun agarwal auto and auto ancillary analyst at kotak securities as such the whole industry will benefit as they have a sizeable presence in rural india hero has been the best performer in the automobile sector on the bourses so far in 2016 with the stock gaining almost 10 since january tvs motors has gained 96 while bajaj auto has fallen about 5 in contrast maruti suzuki the countrys biggest car maker have dropped 25 during the same period while tata motors has declined 77 money managers say valuations of twowheeler stocks are cheaper than that of fourwheeler stocks due to their underperformance over the last couple of years at this point two wheeler stocks look more attractive than that of fourwheelers said kunj bansal ed at centrum wealth management demand for twowheelers has been low for the last twothree years which has created a base demand will pick up provided the monsoon is good bansals top pick is bajaj auto hero and bajaj are trading at 1819 times estimated earnings according to bloomberg estimates tata motor is trading at 37 times among car makers maruti is trading at 22 times while tata motors is at 11 times analysts feel eicher motors is not a good bet at this juncture eicher motors could witness some ruboff but as its clients are predominantly urbancentric it may not see the same upside as companies that are ruralfacing said agarwal yogesh nagaonkar a fund manager at bonanza portfolio said regardless of a rural push or not a good monsoon or not twowheelers are a good opportunity twowheelers have always been attractive as volatility in volumes is much less than in fourwheelers and the affordability factor one must always possess stocks of the leaders in the space like hero motocorp or bajaj auto he said among fourwheelers valuations of maruti looks good now he added by dia rekhi et bureau published on apr 7 2016 at 0828 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1