Subscribe to Tata Motors' rights issue: Dipan Mehta

In an interview with ET Now, Dipan Mehta, Member BSE & NSE, says that he is bullish on Tata Motors. The expert feels that the forthcoming rights issue by the company offers a good opportunity.

ET Now: I just want to get in a quick view on the Tata Motors, and Tata Motors DVR. Do you believe that the rights issue fairly attractive? What would you advice investors?

Dipan Mehta: Before making any comment, I would like to disclose that we do own Tata Motors' stocks. We are quite positive on the company’s long-term prospects and would certainly advice investors apply for the rights issue.
The company will be taking steps to reduce the debt; we also see domestic automobile volumes improving over the next two-three years. The problems, the company is facing with the domestic operations should get resolved, once the company starts reporting profits on a standalone basis.

Then only, you would see the real picture because it is only JLR, right now, which is driving earnings for the automaker. With new models expected to hit roads, Tata Motors should do pretty well going forward. Here, we are biased because we have a ownership in the company.