Tata Motors stock factoring in China weakness, looks attractive: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his view on Tata Motors.

ET Now: Is all the China bad news has been factored in the Tata Motors’ stock price?

Mayuresh Joshi: I believe so. China forms a substantial part, when it comes to their JLR portfolio. With the volume de-growth that we have seen and the correction in the stock price, a lot should get gestated in terms of how the margins would pan out from the China business, the overall JLR margins and the volume growth ex-China.
Our take is that ex-China volumes have held out reasonably well for Tata Motors. Even on China front, there has been a mix set of commentary across auto majors.
So, if you look at commentaries of BMW and the likes, you are probably going to expect some amount of pain still remaining into the system. But, if you look Tata Motors’ numbers on a consolidated basis and the kind of valuations that Tata Motors is currently deriving, our take is that it is fairly valued from an earnings perspective.


Therefore, we believe that long-term investors can definitely look at Tata Motors as the domestic story should also start playing out meaningfully, even as the domestic part of revenue is quite miniscule when I look at the overall story. Medium and heavy commercial vehicle (M&HCV) is seeing some signs of green shoots and again valuations are looking attractive. Thus, Tata Motors looks very attractive to us. China news is getting into the price, but results are something that a lot of analysts will watch out for.