See upsides in Tata Motors: Amisha Vora

See upsides in Tata Motors, says Amisha Vora, Prabhudas Lilladher.

Vora told CNBC-TV18, "We are looking at some of these stocks, like three stocks which we have added to our list of top picks, Larsen and Toubro (L&T), IDFC and Tata Motors. I am sure, last week most of these had a slightly stronger run but on a slightly medium-term perspective, we think that these stocks have come around a valuation where risk return looks pretty favourable."
She further added, "Tata Motors of course not riding on the domestic part, which is into pain both in terms of commercial vehicle (CV) and car market but we are largely bullish on their Jaguar-LandRover (JLR) part of the business, which is almost more than 90 percent in terms of topline and bottomline where some of the new product launches will bring a lot of increase both in volume, traction as well as improvement in EBITDA margin. So, Tata Motors we think still has been left with good amount of steam from current levels also."
"Larsen and Toubro is other stock which we think has corrected slightly more than the markets in year-to-date (YTD) if we see. From current levels we think that the stock offers reasonably very good appreciation potential based on both the oil and gas side i.e. the hydrocarbon side of the business finding some more traction order book building in that as well as some more orders coming from metro as also if the promised infrastructure side comes up from government then competition has become so weak that we think L&T will be a big beneficiary with a slightly better margin profile. So L&T we have upgraded."
"The third stock that I was talking about is IDFC where we think that in these entire banking financial space because of very low credit growth, all attention is going into mortgage and competition is becoming little strong over there reducing net interest margin (NIM), while this side of the business, the infrastructure side where IDFC is focusing on refinancing and they have a very good quality book at current valuation, offers a reasonable risk return profile and a good 15-18 percent growth."