Maruti Suzuki, Tata Motors top buys: Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "Tata Motors, Maruti Suzuki and Mahindra & Mahindra (M&M) are my favourites. In this quarter everything has come together for Tata Motors. Domestic commercial vehicle (CV) market has also picked up significantly and so domestic standalone business has shown a big turnaround and if you see the consolidated balance sheet they have, it has almost become debt free at net level on the auto business. So, the entire risk is gone and they are generating Rs 40,000 crore earnings before interest, taxes, depreciation and amortisation (EBITDA) and trading at just four times EV-to-EBITDA on an adjusted EV-to-EBITDA basis. So, it is a large business doing very well.""Of course Tata Motors will remain always volatile depending upon monthly volumes and so on and so forth. But they have got their act together in China JV also which was very difficult. Lower commodity prices are also helping them. For example aluminium has fallen and they had a contract in November. After that they will get the benefit of falling aluminium also," he said."I would be very bullish on any dip, Tata Motors is a buying opportunity. Same way, Maruti Suzuki, because of the sheer underpenetration of India and I expect significant rural demand pick up considering monsoon and government's reforms. So, Maruti Suzuki and Tata Motors clearly remain top buys."