Prefer Tata Motors, says Lancelot D'Cunha

Lancelot D'Cunha, CEO at ITI Wealth management told CNBC-TV18, "Ashok Leyland is doing well. It offers good value from these levels because we are seeing a small turnaround in the commercial vehicle segment and they are one of the larger players in that segment. So Ashok Leyland would appreciate in line with the improvement in its sales and profitability."

He further added, "If you had a choice of choosing among the various auto companies, I would still probably go with Tata Motors. It presently is factoring in entirely based on Jaguar-LandRover (JLR) and its overseas valuation. Given that we are seeing an improvement in the commercial vehicle segment, you will start seeing some improvement in Tata Motors domestic performance also. Maybe over the next one-two quarters we will start seeing improvement in sales both on passenger cars as well as on the commercial vehicles."

"The valuation hasn’t yet kicked in to Tata Motors share price and if one is looking at a longer-term play for the next two-three years, I would recommend Tata Motors as opposed to Ashok Leyland but if you want to stay with Ashok Leyland, even Ashok Leyland is a good choice because the cycle is turning for commercial vehicles (CVs) and Ashok Leyland will also benefit out of the improvement in the cycle," he said.