Buy Tata Motors stock on declines: Deven Choksey, KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on Tata Motors. Excerpt:

ET Now: Based on the latest JLR despatch numbers which have come this morning, do you think Tata Motors will bounce back?

Deven Choksey: It should bounce back. If you look at Tata Motors’s domestic portfolio, it is not bad for the month of January.

At the same time, the JLR continues to contribute better in terms of the top line as well as in terms of bottom line for the consolidated Tata Motors. Going forward, 2014 is a year in which the JLR portfolio is going to launch new models and that is going to at least stabilise and increase the sale for Tata Motors.

Also, given the fact that America is improving on economic front, you are going to see better numbers coming up. So, Tata Motors becomes a buy at lower levels. A slightest of improvement into the domestic market portfolio probably would mean that the re-rating would start taking place in the stock.

To my mind, this fall is an opportunity. Buy into Tata Motors gradually.