Prefer Tata Motors over Maruti: Lalit Thakkar

Lalit Thakkar, MD Institution, Angel Broking in a chat with ET Now gives his views on Tata Motors

ET Now: If you have to pick and choose between Maruti and Tata Motors for next 2 quarters, which one would you like to choose?

Lalit Thakkar: Probably from a 2-quarter perspective, Maruti can do better than Tata Motors, because we are going to see an uplift in car consumption growth rate.

But, we will also have to consider what is in store for the stocks in an 18-month horizon. Maruti has a 50-55% market share. So, I am sceptical on this company because the competition intensity is going up. Of course, the Indian consumer is still very loyal to Maruti because of their low maintenance.

But looking at the changing aspiration mindset of Indians, I am sceptical that they cannot hold onto 50% share. So, I would like to stick to Tata Motors. Given the choice between these 2, I will go for Tata Motors.

At the same time, there are other stocks in the auto space which I like. For example, we like Ashok Leyland, though this company also is having a 30-40% market share, but the competition density is very low in utility vehicles sector.

We are also expecting GDP growth to improve from 6.5 to 7.5 which will have a significant impact on these companies. So that is the reason instead of going for Maruti, I will go for Tata Motors or Ashok Leyland.