Buy Tata Motors, says Devang Mehta

Devang Mehta of Anand Rathi Financial Services recommends buying Tata Motors.

Devang Mehta of Anand Rathi Financial Services told CNBC-TV18, "Tyre stocks had its dream run till last year and a lot of stocks had passed the valuation test and all these stocks were trading at valuations which wouldn’t be sustainable. We do not favour tyre stocks at this point but in the auto ancillary universe, we selectively do like a lot of companies right from being very bullish on Motherson Sumi Systems till a long time and still being bullish on it."

"We also do like stocks like NRB Bearings , Sundram Fasteners and Igarashi Motors – all these are midcap to small cap stocks but the business models of these companies, the cyclicality which is given for this industry, we feel that these stocks are bound to do very well," he said.

"Regarding the auto universe we would be very selective. We have a buy call on Tata Motors at this point. We don’t agree with the consensus regarding the two wheeler stocks. We continue to like Hero Motocorp and at the valuation which it is available right now, we feel that there is substantial upside, at least 15-20 percent upside on a medium-term basis."

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