Tata Motors to remain in a very tight range: Avinash Gorakshekar, Anagram Capital Ltd

Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about Tata Motors.

What is your take on Tata Motors?

In Tata Motors, our sense is that the civic cycle is still continuing to look quite good. In fact, our sense is that Tata Motors is going to be in a sweet spot except for the fact that its global subsidiaries, the European subsidiary would be under pressure because till now, volumes have not picked up.

The other short term factor which would obviously be an overhang on the stock would be the equity dilution. The company is talking about funding a huge amount of capex in the next 2 years. So our sense is that unless one knows what is the extent of equity dilution, to a shorter extent, the stock could possibly remain in a very tight range.

As a house, we have a reduced call on the stock. In fact, we have been telling clients that instead of Tata Motors, one could get in Mahindra & Mahindra where the traction could be more significant and attractive from a medium term perspective.