Stock Talk: Views About Tata Motors, Maruti, Yes Bank, Infosys

The Sensex and Nifty traded on a strong note on Wednesday tracking gains in the global market. The Sensex jumped as much as 285 points to 28,218 and the Nifty surged nearly 1 per cent to trade firm above psychological level of 8,500. Ajay Bodke, CEO and chief portfolio manager (PMS) at Prabhudas Lilladher spoke to NDTV about the following stocks.(Watch) Tata Motors: We are positive on the commercial vehicles segment in India. The sales of commercial vehicles are pointing towards a revival in the economy. However, the domestic business of Tata Motors contributes only 20 per cent to the company's revenues. It is the JLR pie which will decide the trajectory of the stock. The latest JLR numbers point to a slowdown in China, which is taking a toll on the company's numbers. So one ought to be cautious on Tata Motors. We recommend Ashok Leyland in the commercial space. Maruti Suzuki: The company has a dominant market share. Although there was a decline in the June sales, but we are positive on the stock. Also lot of people are banking now on the 7th pay commission recommendations, which are due any time now. That could bring massive volumes in the car industry in general and Maruti being the leader will be benefited the most. We advise investors with a medium term perspective to buy into Maruti Suzuki. Yes Bank: There were concerns in certain quarters on Yes Bank. Having looked at the entire issue in totality we feel that there is not much to worry, because most of the assumptions were based on sanctions and not disbursals. The company had reported stellar performance over the last many quarters and our belief is that as once economic growth picks up, Yes Bank will join the likes Axis Bank and HDFC Bank and will be in a strong position to deliver a market beating performance. So we will still advocate investors to look at Yes Bank on drops for a medium term perspective. IndusInd Bank: The Bank has posted a stellar performance both in terms of the topline as well as the way they have been able to manage their margins. The quality of management of their assets makes IndusInd a standout among its peers. The stock continues to remain a top buy and investors can look at the company for a medium term outlook. Eicher Motors: We are broadly positive on the company. It has been posting very good volume numbers. The higher valuation of the stock should not be a concern as long as the company is maintaining volume growth. Infosys: We believe that Dr Vishal Sikka (Infosys CEO) will be able to effect the transformation which he has spoken about at length and move into higher value added services over time. He has also reassured that current year he will be posting industry beating performance. We will be comfortable with Infosys in the IT sector. Sadbhav Engineering, Ashoka Buildcon, L&T, Cummins India: Investors can invest in these stocks with a one-two year perspective. In the first two months of this fiscal year the government has spent 22 per cent of its total budgeted capital expenditure in the roads sector. Government's focus in terms of frontloading its capex and crowding in private sector investment is beneficial for the capital goods, engineering, road construction companies.

Stock Talk: Views About Tata Motors, Maruti, Yes Bank, Infosys

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