Bet on Hero MotoCorp over Bajaj Auto: Kotak

Cites Hero's valuation discount to Bajaj Auto

Kotak Institutional Equities upgraded Hero MotoCorp Ltd to "add" from "sell", and maintained its "reduce" rating on Bajaj Auto.

Kotak says it changed its preferred pick to Hero in the two-wheeler segment given Hero's valuation discount to Bajaj Auto.

The brokerage also expects Hero to post higher earnings growth than Bajaj.