Bullish on Tata Motors, to rally up to 340: Harendra Kumar

In a chat with ET Now, Harendra Kumar of Elara Capital, shares his views on Tata Motors, ONGC and Cipla.

ET Now: Three important numbers came after the bell yesterday - Tata Motors, good numbers, ONGC, bad numbers and Cipla, okay numbers.

Harendra Kumar: Yes, this has been a mixed bag. Tata Motors’s results paved the path for it to run up to probably 340 from hereon. So the sceptics have been answering in terms of the margin profile and in terms of the volume number that it has likely posed. There is also some amount of management commentary which has indicated that they will probably address the decline in the domestic business as well. So the stock should hold and probably set the base for the rally up to 330-340.

On ONGC, we would not want to read too much about these results because the whole outlook for the market on the oil and gas pack is about the gas price re-pricing to probably $6 or $8, that is what has been driving. In fact if the stock corrects, we would urge people to accumulate the stock because the yield on the stock is extremely attractive at this point of time.

In terms of Cipla, clearly the recovery is pushed out and they are still in investment phase and that would potentially not go down well with the investors. So all in all, it has been mixed bag but two positives I would say against one which is slightly negative.