Buy Tata Motors, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Eicher Motors has done a stellar performance in Q2. The Royal Enfield business is a gem of a business for Eicher Motors. I think the MHCV segment also didn’t do too badly considering the industry size.”

“The Royal Enfield business did margins of 19.8 percent which was highest for them for any quarter gone by. Again consistent cash flows, cash of around Rs 800 crore, so it looks like a very decent stock to accumulate. So one can have long positions in Eicher Motors for a target of Rs 5050 and stop loss at Rs 4870,” he added. “Tata Motors has got beaten down on news of the capex plans that the company has announced from 2.75 billion pounds to 3.5 billion pounds. Again from a short-term perspective it might put strain on the cash flows but in the long-term perspective it can introduce newer models. It is consolidating its product and platforms. The stock has corrected from Rs 400 levels to the current levels that we are seeing. So one can initiate longs in Tata Motors with a target of Rs 385 and stop loss at Rs 365.” "Tata Consultancy Services (TCS) - with the Fed news coming through and the RBI policy coming in next week there is a lot of uncertainty as far as the cyclicals are concerned. So investor interest will come back to defensives like IT, pharma. Again TCS has been a stellar performer. A 5.4 percent dollar growth, volume growth of 7.3 percent, margins at 30.1 percent and it has added three clients in the last quarter of USD 100 million plus,” Joshi said. “The other stocks in the IT space are doing reasonably well. HCL Technologies, Infosys, Tech Mahindra has done reasonably well. TCS might catch up. So one can initiate longs on TCS with a target of Rs 2060 and stop loss at Rs 1965."