Stock Review:Tata Motors

Although the stock might have bottomed out, it is not expected to outperform going forward. A very long-term investor can think of staying invested. This year's earnings are at best likely to be at the same level as last year or may be 10% lower.

If you look at the domestic market for Tata Motors in the commercial vehicles segment, the sales are tilting more towards the commercial vehicles. The company is expected to lose market share in the passenger cars.

When it comes to GLR, on back of very good numbers last year, volume growth is expected to be in high single digits. Considering the challenging domestic environment, Tata Motors will find it difficult to beat its numbers posted last year.

Last two years have been exceptionally good and the stock has been rerated. The best case scenario for Tata Motors would be that the stock would languish in a sideways zone. The numbers might be at last year's levels.

FY13 is expected to be better year than FY12. If the investor can buy on declines on bad days and averages out his price at around Rs 1,000, then he can look for a price of around Rs 1,250-1,300 in 1.5 year's time frame.