Ambareesh Baliga negative on Tata Motors

Ambareesh Baliga, Karvy Stock Broking is negative on Tata Motors.

Baliga told CNBC-TV18, "Auto should correct much more because they are at the higher band of the valuation metrics. So I think the correction here could be deeper than what we should see in the banks. So I think most of these stocks we see a correction of atleast around 15-18%. One of those stocks where we are extremely negative for the time being is Tata Motors where we should see a much deeper correction because we feel that the valuations are extremely expensive because they have not been writing off the research and development expenses infact others have been writing off nearly 60% of what they are spending but Tata Motors just writes off around 7-8%, so if you take that into account, the EPS falls by nearly 40-45%. So I think this stock should come to levels of closer to 1,000 or possibly below that."