Keep Tata Motors in portfolio, says Vishal Jajoo

One should keep Tata Motors in portfolio, says Vishal Jajoo of Nirmal Bang Securities.

Jajoo told CNBC-TV18, “As far as the run up goes Tata Motors has been the best performer in this calendar year yielding a return of close to 60% in the Sensex. This has got a significant to do with the performance because Tata Motors sales through JLR have quadrupled in China, have doubled in Russia and the figures which are reported on a consolidated basis they have been phenomenon and much better than expectations."
He further added, "If one looks at the October to December numbers, the contribution of JLR to the consolidated profits stood at 95% and we expect this trend of around 90% plus to come in this quarter also. Tata Motors had acquired JLR in 2008 with a total acquisition cost of USD 2.3 billion and if you add up the two quarters profit, Rs 3400 crore in October to December quarter and roughly we expect Rs 4000 crore in January to March quarter then these two quarters itself the profit is capable of paying off the cost of acquisition. So going is good, the company has got a slew of launches going forward and the response to their latest model Evoque was great and therefore we expect that the stock price should give good returns in the short, medium as well as long term. It’s a must have in any investors portfolio."