"Overall, the risk reward seems extremely favourable and hence, we have upgraded Tata Motors from reduce earlier to accumulate," said Jay Kale, Elara Capital.
He said Jaguar Land Rover (JLR) Q4 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was largely in-line with estimates and the company would continue to face volume growth headwinds.
According to him, new launches by Tata Motors would support the growth.
Talking about preferred picks, Kale said, "Maruti Suzuki India would definitely be one of our picks, volume growth continues to remain strong over there and the order backlog is also pretty.”
Motherson Sumi Systems is another stock that we liked and we are betting on tyre stocks like Apollo Tyres and MRF, he further mentioned.