Buy Tata Motors, says PN Vijay

Buy Tata Motors, says PN Vijay, www.askpnvijay.com.

Vijay told CNBC-TV18, "I would surely buy Tata Motors. I think it’s an excellent pick. There is no great evidence to say that the commercial vehicle demand in this country has fallen off a cliff or something like that. There is some slippage. It’s a bit like Bajaj Auto. The day Bajaj Auto’s results came out the share skyrocketed in a bad market. So that could happen to Tata Motors. The situation on the ground in China where Jaguar is pushing a strong sales effort is not too bad either. So, Tata Motors to my mind is a natural buy on dips."
He further added, "I won’t share that optimism with Mahindra and Mahindra, because Mahindra is a real problem. The drought hit areas, especially Punjab and Haryana is the biggest buyer of tractors in India. They account for 75% of tractor purchases and they are bound to see some sluggishness. So Mahindra to me doesn’t look like a great buy, but Tata Motors surely around these levels would qualify for a good long-term pick."