Keep Maruti Suzuki, Tata Motors in portfolio: Hitesh Goel

Hitesh Goel, Senior Analyst, Kotak Institutional Equities told CNBC-TV18, "Maruti Suzuki and Tata Motors have a pretty good product launch momentum over the next 12 months. Maruti will be well placed in terms of bringing the SX4 crossover, there is a premium hatchback which is planned, there is also a diesel Celerio that is planned and then SUV launches next year. So, my belief is that Maruti will gain market share in the passenger vehicle space. Also, Maruti gains from the depreciation of yen, so margins will start going up. The only thing to watch would be whether the demand in the entry level segment comes back which can give a boost to the margins because discounts on the entry level segment will start coming down which could lead to upgrades in consensus numbers. So, we are quite positive on Maruti."

"In Tata Motors we are seeing good demand on the JLR side. Despite the slowdown that people are worried on China, I think it is more of a market share gain story. They are present in half the number of cities in China as compared to Audi and BMW and there is also potential growth opportunity in Jaguar model with the new Jaguar XE coming through and Jaguar SUV coming through which is called the F-Pace. They have recently launched it in auto shows and it looks a very exciting product. They have also done a lot of customer reviews on those products and it looks like it is going to match the BMW 3 series quality level. So, that is a big upgrade for Jaguar," he said.

"If you look at the China market, Jaguar has only 2 percent market share in the sedan side, so that is the main trigger that people are looking for. If Jaguar can increase volume by three times, potentially you will see margin expansion also in FY17 because most of the launches would be through and you will have platform consolidation. So, both stories from a two to three year perspective looks very exciting stories in my view and should be a must have in everyone’s portfolio."