Don't add Tata Motors, Tata Steel to portfolio: Srivastava

Ajay Srivastava, CEO of Dimensions Consulting said they would not add Tata Motors, Tata Steel or even State Bank of India (SBI) in portfolio.

Srivastava told CNBC-TV18, “All the three stocks (Tata Motors, Tata Steel or even State Bank of India (SBI)) in our portfolio are a no go for three reasons. In case of SBI we have been very wary of the performance and we still don't understand the quarterly variation in results. The chairman is saying that the results will be very good for the next quarter. It is a statement but we are not going to bank on it.”
 
He further said, “So national banks as a block, SBI particularly at this point of time, I don't think is a zone where you want to invest money. The reason being that if you want to allocate money to banking sector there may be far better candidates to allocate money than SBI at this point of time.”
“For Tata Motors, I don’t think their domestic situation is going to improve in a jiffy. Their domestic vehicle portfolio is lagging, truck sales are not going to go up in the next quarter or so. So I would tend to believe that it may be touching lows but the time to buy will come. The time is not right now,” Srivastava added.
 
“Tata Steel is in a zone where you may buy it for value at this point in time, but the return could be very marginal. I don't think there is a serious downside but the returns could be marginal”