Have 'sell' rating on Tata Motors; prefer Hero MotoCorp among auto stocks: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director, Institutional Equities, Elara Capital, shares his view on Tata Motors.

ET Now: What is your view on pure auto plays? Even as investors are now betting big on Maruti, they are concerned about names like a Tata Motors. With China getting wobbly, a lot of questions are being raised about what the JLR component is going to post in terms of sales and volumes.

Harendra Kumar: In the auto pack, we have a sell rating on Tata Motors sell because there are multiple concerns out there. Maruti Suzuki, on the other hand, is a secular story. The big discussion point should hover around the two-wheeler space, where is Honda actually more or less vacating the space in terms of motorbikes to Hero MotoCorp. So, you have seen what one quarter of optimism for Bajaj Auto did to the stock price. The moment Hero is demonstrating let us believe that the stock is going to rerate significantly. If you are asking me the opportunity in the auto pack, it lies with Hero MotoCorp at this given point of time.