Key Points
Tata Motors and TVS Motors are well-positioned for both present sales and future growth in electric vehicles (EVs), says Chakri Lokapriya, CIO & MD of TCG AMC..
While EVs are gaining popularity, they only make up around 5%-7% of sales lending much importance to traditional petrol and diesel models..
In addition, Lokapriya say the current rally in India's stock market could continue due to improved business conditions, offering a positive outlook in NBFCs such as Cholamandalam Finance and M&M Financials.ETMarkets.com..
NBFCs are clearly well positioned because we seem to be close to the peak of the interest rates and the loan growth is also holding up fairly well and against this environment, companies like Cholamandalam Finance, M&M Financials clearly benefit as commercial vehicles loans, improve first and also rural sales are expected to do well..
Indeed, Tata Motors traditionally has been a very inexpensive stock and there was a great amount of fear given slowing down sales in China, Europe, etc, for the JLR and when that confirmation came and also given that it is free cash flow profile if you look for the next couple of years, it is fairly strong, etc, and therefore stronger balance sheets, better placed..
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