“No, not really. Because what happened was that this impact happened some time back, somehow it came into the markets later and now the company is coming out with a statement that things are stabilising now,” Sabharwal said in an interview to ET Now.
He added that the company’s underperformance relative to its peers in the auto sector, combined with GST cuts on vehicles in India and improving prospects for JLR through the US-UK trade pact, could provide support.
“So, if things stabilise and given the fact that it has underperformed so much vis-à-vis the rest of the auto pack and the GST cuts on autos in India will definitely have a positive impact on the domestic business and the JLR business also with the US, UK trade pact should have started to look up. So, I would think that although we do not have an exposure in any of our long-term portfolios into Tata Motors at this stage, it started coming more into value zone rather than at a price where anyone who is holding the stock should be looking to sell,” he noted.
On the technology front, the recent H-1B visa debate and its potential to drive GCC opportunities has also stirred investor attention. However, Sabharwal remained cautious. “I do not really think so because the entire news flow is so dynamic that it will take some time to settle down and we do not really know what the next steps will be. Any of the segments where the exposure is more onto the US market or any of the companies which are exposed to the US market so much we should be careful on them. At this stage as we go to the towards the end of 2025, things will stabilise mostly.”
On the broader market, particularly defence stocks, Sabharwal highlighted their strong long-term visibility but warned about elevated valuations. “Selectively opportunities keep on coming up as there are periods of corrections. So, the most credible play among the government owned companies on the defence space remains Bharat Electronics and that is one company which will continue to do well,” he said. He further added: “Then, there are so many other companies like even HAL and the shipyard companies which are a mix of overall demand for ships being built in India as well as defence order flows. So, here the valuations are still a bit stretched. So again, we need to look for opportunities where when some corrections come the overall markets correct and then take exposure because the good part for many of these companies is that the visibility is there for years. For most of these companies there is growth visibility for the next 5 to 10 years which is something which is lacking in a majority of other industries.”
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