How to trade BHEL,Tata Motors, TVS Motors now

BHEL

Brokerage: Morgan Stanley
Rating: underweight
Target: Rs 100
Rationale: After a steep fall, BHEL shares rose 26 percent over the last month, beating the sensex by 23 percent. FY13E P/E of 6.8 times, a 54 percent discount to the sensex, is optically attractive.

Tata Motors

Brokerage: Goldman Sachs
Rating: Buy
Target: Rs 366
Rationale: The stock is trading at a discount to peers with implied valuation for JLR at trough. Key risks include cyclical demand pressures, higher fixed costs, environmental regulations.

TVS Motor

Brokerage: Bank of America Merril Lynch
Rating: Underperform
Target: Rs 32
Rationale: The key triggers for their underperform rating are the company's marginalised status in the domestic two wheeler market and lack of clarity over future strategy of indonesian subsidiary