Siddharth Sedani bets on TaMo commentary; says use dips to accumulate stock

"Looking at the management commentary, I believe the stock has fallen because of the bad results or lesser than expected results but this can be a good opportunity for an accumulation," says Siddharth Sedani, Head - Executive VP - Equity Product & Support Sales, Anand Rathi Shares

In the case of Tata Motors, the losses compared with what the Street was anticipating has definitely widened. The brokerage community is downgrading the counter. Where do you see Tata Motors headed from here?
The numbers reflect in the price also and we have seen that the result has been a little weak compared to what the Street was expecting, margins were down. But overall, the commentary happened to be very strong.

So, the commentary vis-à-vis the result is different and we believe that coming quarters can be good for Tata Motors as we know they have new launches right in front of them in the EV space. The Altroz EV coming up, new Harrier is coming up. The new launches are one thing we can harp on. Added to that, they are talking with some of the semiconductor manufacturers for a long term agreement where the chip shortages can be curtailed and that is also one strong moat for the company.

Eventually, in the passenger vehicle space on the domestic side, they have been clocking around 45,000 to 48,000 passenger vehicle sales and are planning to ramp up to 55.000. Added to that, Jaguar Land Rover performed better than Indian operations. They are ramping up production on the Range Rover side also.

So looking at the management commentary, I believe the stock has fallen because of the bad results or lesser than expected results but this can be a good opportunity for an accumulation.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)