Tata Motors available at 'dirt cheap' valuations: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his view on Maruti Suzuki.

ET Now: Does Maruti deserve to trade at a premium to other auto makers? Will it continue to march up the way it is marching up?

Mehraboon Irani: It has been a great outperformer. A similar movement happened with another auto maker, which too was the market favourite in the auto space. Here, I am referring to Tata Motors. The stock is fumbling because of the problems first in Europe and then in China. Have this problems being overdone as far as the valuation of Tata Motors goes? I would like to say yes because I am very positive on Tata Motors, but large part of the….

ET Now: It has been on the buy radar… You have been ...

Mehraboon Irani: …Right, from the time it was Rs 200. I have been positive for the last four years on Tata Motors. I have been very positive on Tata Motors and I still feel it is dirt cheap. Technical analysts will not agree. When the momentum happen, people will start looking at the stock and I personally feel the downside now for Tata Motors is much lesser than the upside. I see upside over the next 12 to 15 months. Coming to Maruti vis-à-vis Tata Motors, quite large part of the money has come out of Tata Motors and M&M and that money has moved into Maruti over the last 6-9 months. If we look at the performance of Maruti over the last one year, it is phenomenal.

Now what should one do at this present price? As far as numbers go, the carmaker is going to deliver on numbers front, and by the time consensus starts building towards other stocks in the automobile pack, this particular stock can continue to perform well.