Tata Motors' JLR should focus on Land Rover's looks: Shankar Sharma

In part of a longer interview with ET Now, Shankar Sharma of First Global, shares his views on Tata Motors.

ET Now: Are you saying a PE multiple of about four or five times Tata Motors is still looking expensive because of what could go wrong if the stock is trading at a PE multiple of four times?

Shankar Sharma: No, it isn't about the multiple, it is really about the outlook and I am circumspect on the fact that a large part of the numbers have come from something that I do not believe in, which is really the Land Rover part of it. But who knows, I see a lot of Land Rovers in my building, actually far more than Jaguars. So, I may be completely wrong and let us hope I am wrong and the stock goes back to Rs 300 or Rs 350.

However, one has to be a little circumspect because when you make vehicles that are selling well but do not look nice, a disconnect will set in at some point. For instance, BMW makes terrible-looking vehicles ever since they got Chris Bangle as their designer but they have not changed it (design) that much. They have just smoothened out the rough edges, it still looks terrible and when we compare to Audi, Audi looks better. The numbers in India Audi are really trumping BMW's. Audi is globally now number two, it has overtaken Mercedes Benz so you have to focus on the looks and I do not think JLR is doing that on the Land Rover part as much as I would like them to do.