People would prefer Tata Motors for better appreciation: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on various stocks.

ET Now: Why is your call on Tata Motors?

Deven Choksey: Tata Motors looks interesting because all its portfolios are doing reasonably well. That includes domestic portfolio and commercial vehicle space, passenger vehicle space and the overseas portfolio of JLR. JLR portfolio particularly is doing very well.

So, this is something that is asking for an attention into this company. The stock which is available at around six times price-to-earning ratio and probably offers a growth opportunity. People would shift into companies like Tata Motors for a better appreciation. So, this is where the natural course of a portfolio churning is taking place. Two wheelers stocks are less preferred and a company like Tata Motors within the auto space is more preferred.

Also, a lot of weightage is also given on if RBI gives a particular direction about reducing the interest rate going forward. Some of the auto companies including Tata Motors would stay into gain out of this move. So, that is why people have started shifting into the Tata Motors as a portfolio choice.