OSK Research Sdn Bhd expects Proton Holdings Bhd to post favourable results in the shorter term on the back of its new model pipeline going forward in addition of the much improved operating landscape.

It is maintaining its 'buy' on Proton being the cheapest auto stock under its coverage which is only trading at forward price-per-earning of 7.2 times versus the sector average of 10 times.

Proton shares are hovering five sen higher to RM4.56 as at 10.20am on Bursa Malaysia.

'We make no changes to our earnings estimates for Proton pending more clarification from the management on how the injection to Lotus will be structured (whether a new issuance of shares will be involved),' it said in a research note today.

On Proton's foray into the Indian market, OSK Research said: 'We believe it is too early to tell how this would contribute to earnings although we are still generally positive on whatever the outcome given the market potential.' -- Bernama