Tata Motors DVR is a good buy: Parag Thakkar, HDFC Securities

In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, says, Tata Motors DVR is also a great buy especially now it is coming to Nifty and Tata Motors was always a good buy at these prices


ET Now: Tata Motors DVR is going to find its way into the Nifty. Does it seem like considering it is now Tata Motors and is a DVR going to find as much absorption?

Parag Thakkar: Definitely. On result day, Tata Motors touched around Rs 265 levels. So, it has become extremely attractive. It has total EV of around Rs 1,30,000 crore to Rs 1,35,000 crore and expected EBITDA of Rs 40,000 crore. In fact, this quarter they added Rs 9,500 crore to EBITDA. A global luxury brand with just 10 per cent market share in the global luxury car market plus domestic CV is clearly turning around. The only problem is that they do a lot of R&D just to be in the business and that does not add capacity and so that way there is a concern.

ET Now: So you are saying you will still buy Tata Motors and not Tata Motors DVR.

Parag Thakkar: No I am saying Tata Motors DVR is also a good buy because now that it is entering Nifty, it is available at a discount because you do not have voting rights and there is no corporate governance issues there. So Tata Motors DVR is also a great buy especially now it is coming to Nifty and Tata Motors was always a good buy at these prices.