May 14, 2013 06:00 PM IST | Source: CNBC-TV18

Buy Tata Motors with a target of Rs 350-360: Rajesh Agarwal

One can buy Tata Motors at around Rs 300 levels with a price target of Rs 350-360 in the next six-nine months, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited.

Rajesh Agarwal, Head of Research, Eastern Financiers Limited told CNBC-TV18, "In auto space we have two top picks, one is Tata Motors and in two-wheeler we have Bajaj Auto as our top pick. As far as Tata Motors is concerned although domestic sales have been very sluggish in the last few months but if you look at JLR the numbers have been very encouraging. Even today the 12 percent growth number which they have announced despite all the slowdown in European markets and Chinese markets it is very encouraging. Going forward also we believe that this performance is going to be repeated.”

He further added, “Even on valuation parameters if you look at Tata Motors it is trading at a huge discount to its other peers almost at 40-50 percent discount to its other peers. Hence we think it is a very good buy at these levels. At around Rs 300 levels one can enter this stock with a price target of Rs 350-360 in the next six-nine months. In a very short-term, may be in the next three months one can have a price target of Rs 330.”

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