Expect Tata Motors to move towards 340-360 mark: Rajen Shah

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking, shares his views on Tata Motors

ET Now: What is your call on Tata Motors, does it seem like the positive is in the news or is there further headroom in the stock price that you are recommending right now?

Rajen Shah: If you see the consolidated annual numbers, they have been okay especially in lieu of the fact that the domestic performance was hit substantially. If you see the domestic auto sales, they were down 31% for the year. So despite that, the company has performed well, thanks to Jaguar Land Rover. so the EPS has come at about 31 and it is trading at hardly 10 times.

So there is modest 15% upside in Tata Motors and over the next six months, probably the domestic auto industry will revive because sooner or later the RBI is going to cut interest rates. So overall, we do expect Tata Motors to move towards about 340-360 mark over the next maybe three to six months.