Continue to remain bullish on Tata Motors: Alchemy Capital

Ved told CNBC-TV18, “We don't have much exposure to two-wheelers, but we do have some exposure to Tata Motors and Maruti Suzuki . Tata Motors JLR coming with a profit warning was a little bit of a dampener, but I still do believe that there is a play out in the longer-term.”

“As globally things stabilize, they have a very strong product line. And the very fact that they are increasing their capex means that they are very confident about their volumes going into the future. While there has been a bit of a setback, we still like that name and we continue to hold Tata Motors,” Ved added.

Ved also said, “Maruti after a low base last year should do well this year. On the whole, we are still positive on auto and it is a better way to play the interest rate cycle and the recovery in the markets. I think people are buying something like Tata Motors right now for JLR. Its domestic car business is struggling and so is the medium and heavy commercial segment.”

“But, if indeed over the next few months, the government is able to resolve some of the issues on infrastructure and mining, that could be an interesting thing where medium and heavy commercial vehicles could bottom out and start to move up because they generally fall late into the cycle and rise late into the cycle. There is an additional play there and let us not forget that Tata Motors is still one of the largest CV players in the country. There could be an upside two quarters down the line in the CV segment itself and therefore, we continue to remain bullish on those names,” Ved added.