Sell Tata Motors: Gautam Chhaochharia

Sell Tata Motors, says Gautam Chhaochharia, UBS India.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset
moneycontrol.com

Home » News » Stocks Views

Feb 18, 2013, 10.45 AM | Source: CNBC-TV18

Sell Tata Motors: Gautam Chhaochharia

Sell Tata Motors, says Gautam Chhaochharia, UBS India.

Like this story, share it with millions of investors on M3

Sell Tata Motors: Gautam Chhaochharia

Sell Tata Motors, says Gautam Chhaochharia, UBS India.

Post Your Comments

Share Cancel

Gautam Chhaochharia (more)

ED & Head India Midcap Research, UBS | Capital Expertise: Equity - Fundamental

Sell Tata Motors , says Gautam Chhaochharia, UBS India.

Chhaochharia told CNBC-TV18, "We still do not like Tata Motors. We still have a sell on the stock. I think the earnings estimates are factoring in the best case scenario of all the new models in Jaguar Land Rover (JLR) doing well and then margins sustaining as well as a very quick recovery in the local Commercial Vehicle (CV) cycle. I think both of these seem unlikely or the best case scenario to us while a more reasonable case scenario will be slightly below what the Street is factoring in."

He further added, "The stock is trading at a premium to where Audi and BMW are trading at. You could argue that Tata Motors had higher growth, but on the other hand you do have lesser visibility in terms of free cash flows because of the capex cycle which they have laid out for JLR. So keeping that in mind the valuation premium seems at best unjustified. So at this price the risk-reward is clearly unfavourable in our view."

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Sell Tata Motors: Gautam Chhaochharia

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login