Tata Motors a safe bet to buy: Gaurav Doshi

In a chat with ET Now, Gaurav Doshi, VP Equity Specialist, Morgan Stanley PWM, talks about Tata Motors.

What about Tata Motors? While the numbers were pretty much in line, what’s the market reading because the kind of selling that we saw on Friday was quite overdone?

Unfortunately in this market, there are just more takers for a bearish call. We are expecting a little too much from Tata Motors. One is that the margin compression due to increased commodity prices was something that a lot of people were expecting and it is not like something that took us by surprise. Secondly in the auto space, if your market is getting concerned about the Tata Motors’ margins, you should be even more worried about a Maruti or a Hero Honda’s margins going ahead, so in the auto space, we continue to prefer the CV makers like a Tata Motors and M&M. Honestly if the capex cycle in India does increase, these two stocks are the best proxies for the capex spend increase in India, so we would actually be very constructive if Tata Motors or M&M were to dip and provide good entry opportunities.