We have a buy on Tata Motors in the auto space: Suresh Mahadevan, UBS Securities

Suresh Mahadevan, MD, Head-India Equities, UBS Securities in an interview with ET Now talks about Tata Motors.

Tata Motors is not really getting its due from markets. They are delivering quarter on quarter basis, they are meeting analysts’ expectations, beating analysts’ expectations but the stock is finding it difficult to gain elevation.

Within the auto space, we have a buy on Tata Motors, no doubts about it. Our analysts like it but some of the stocks have done so well that at some point, it is easy for people to sell. You know the human psychology. It is a lot easier to take their wins down. When you want to raise cash, you sell some of the winners and you hang onto the losers. It is just a good philosophy in behavioural finance.

So with Tata Motors, the stock maybe a little bit under that, I agree with you that the valuations are pretty attractive and the JLR performance has definitely turned around. So there is a little bit of that you are seeing. So we like the name but from a fundamental basis, we like Maruti and Hero Honda more at these levels.