According to Prayesh Jain of IIFL, Tata Motors is a good buy at current level.
Prayesh Jain of IIFL told CNBC-TV18, "The US sales are positive and strong. We have a buy recommendation on Tata Motors with a target price of Rs 550. However, the Brexit issues are there but Tata Motors being a net exporter, when pound depreciates, it gains in terms of exporting in dollar denominated term while its import also gets hurt but net-net it will still be a gainer while tariffs are still far away. The negotiation have not started."
"It should gain from depreciation of pound and the kind of model launch that it is doing, the volume growth should sustain over the medium-term in most of the geographies. European Union (EU) might slow down a bit, so that could be slightly a cause of concern, otherwise Tata Motors is a good buy at current level," he said.
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First Published on Jul 4, 2016 01:44 pm