Vishal Jajoo, Nirmal Bang Securities is of the view that one can buy Tata Motors on decline.
Jajoo told CNBC-TV18, “There are problems with regards to the domestic automobile sales, but if one looks at Tata Motors with 75 percent of their sales coming in from Jaguar Land Rover (JLR) and more than 90 percent of their profits coming in from that particular subsidiary, I think if one bets on the fact that China is recovering and there were question marks with regards to survival of eurozone and of late we are not discussing those issues anymore, if one has to play on these two economies I do not think so one can get a better stock as compared to Tata Motors.”
He further added, “Yes, there are short-term volatilities considering the fact that the stock has had a decent run up over the last few quarters. The stock has surpassed the BSE Auto Index and the broader indices by registering a growth of 50 percent over the last one year. So there could be short-term volatilities as far as the stock price goes. I am recommending buying Tata Motors on declines, because we had JLR numbers and there was marginal disappointment on those fronts. So one should ideally use these declines to accumulate the stock.”