MARCH 18, 2021
Ashok Leyland vs Tata Motors Share Price: Ahead of the big and long awaited scrappage policy briefing in parliament by Nitin Gadkari on scrappage policy, commercial vehicle makers’ stocks like Tata Motors and Ashok Leyland have been quite volatile. According to stock market experts, both Ashok Leyland shares and Tata Motors shares are at good buying levels for the short-term but in the long-term they had a different take. Exerts said that Ashok Leyland shares are better placed in comparison to Tata Motors stocks for the long term.
Speaking on which share to buy, Ashok Leyland or Tata Motors;, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Both the stocks will give better returns as Union Minister Nitin Gadkari is going to brief about the much awaited Scrappage Policy in parliament today. There can be some major announcement coming in from the Modi government.”
Gorakshkar said that if Nitin Gadkari comes with any major announcement after the Scrappage Policy briefing today, then demand for new vehicles will go up in both private and commercial vehicle segments. So, both Tata Motors shares and Ashok Leyland shares are good shares to buy in the short-term time horizon.
Giving important levels for Ashok Leyland shares and Tata Motors shares, Mudit Goel, Senior Research Analyst at SMC said, “Ashok Leyland has strong support at Rs 115. One can buy Ashok Leyland shares at current levels for the target of Rs 125 in next one to two days maintaining the stop loss below Rs 115. Similarly, one can buy Tata Motors shares for the immediate one to two days target of Rs 327 to Rs 340 maintaining the stop loss at Rs 300.”
As scrappage policy will have a long-term impact on the commercial vehicle segment and unlock activities are in accelerated mode that also augurs well for the segment, it becomes important to know which of the two stocks is a better share to buy today for long-term. In this regard we talked to both the experts and they unanimously said that Ashok Leyland is better placed.
On the Ashok Leyland vs Tata Motors shares query, Avinash Gorakshkar said, “Tata Motors has debt and it has business overseas too, but Ashok Leyland valuations are better, it is completely a domestic player and there is a turnaround in the segment that is going to impact the commercial vehicle segment for next one and half years to two years. As Ashok Leyland share price is very low in comparison to Tata Motors, more retail and institutional investors are expected to get attracted towards it.
Courtesy/Source: Zee Business