Vehicle scrappage policy: Is it right time to invest in tata motors@290 and ashok leyland@122
Hello Dimers
Please provide your views on which stocks is going to effect (either + or -) due to our government upcoming Vehicle scrappage policy.
Is the policy going to approve in coming budget feb 2021?
Is it good time to invest in tata motors@290 and ashok leyland@122 (today rates). Or add any other stocks which going to be multibaggers?
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I also saw somewhere that Tata Motors is coming up with Electric car cheaper by 10-15lacs than Tesla. Not sure of the source.
Tata motors already have a EV car at around 15lacs . Way way cheaper than Tesla.
Personal opinion…Tata Motors is a buy
Company has transformed itself..products are good. Current generation cars are selling good as well..
Ashok Leyland…can’t say much .purely commercial vehicles..Tata looks better to me.
Never bet on govt to do anything for sure, as of now almost all stocks are overpriced because market itself is overpriced by a lot. Only buy those overpriced shares which will not lose much once the market corrects which means shares must have good fundamentals.
True. Am just sitting tight 
IMO: it is economy boosting trick by Govt, making people to buy new cars, to uplift auto sector. The used cars market may get affected
I don’t think there will be a long term impact in terms of Auto pricing due to the scrappage policy….. The new Gen pop just wants to keep exchanging cars lihe mobile phones, so this might make an impact in the commercial segment, that too might cause some intermediate pressure but that will be to the consumers (sadly veggie prices, dal rice etc will go up) not the industry…
You don’t have to necessarily scrap your vehicle you have to pay higher fees for FC, Road Tax Insurance etc…
Yes their sales will increase but that would just bring them to their existing YoY sales figures (pre Corona), as usual people will react and start buying, you can buy Auto stocks opening session monday hold for some time and you can sell it to make a small profit… may be TM 288~300 even 308/12 in a couple of days after and AL at about 118-130,… Remember these are pure guesstimates, these 2 stocks are super bullish, like really super bullish right now (inflated prices), my prediction could be completely wrong… Keep it on your watch list if you’re a long term investor, then once it corrects AL ~70-80, buy and hold till 2023 and then decide based on the market..
Disclaimer: This is my opinion only, don’t take this as investment advice, consult your investment advisor for investment advice……
Thank you so much for detailed explanation. When can we expect correction? Market correction means sensex to reach below 13k or 12k?
How come to know these stock prices are bullish?
@guest_999
Just want to learn something.
Offtopic
Aap ka apna stock bata do ji….Jo abhi le sakte hai.
Bhai honestly no idea, but I will do some digging
Currently it is wise to park Money in liquid funds/idfc till PE comes down is what I feel…
Which liquid funds gives best interest rates. Please suggest.
IDFC bank not available in my area. Can we open account in online? What is the interest rate for savings account.
Not the right time to invest now but both these stocks are super bullish right now. I am holding Ashok Leyland and my average price is around Rs. 80 and I will buy some if it comes around 105 level. I doubt it will go below 100 level unless market corrects a lot.
Thanks for the suggestion bro. How can we calculate/estimate the stock price is high/low.
How max/fall a stock price reach?
…now my opinion is sell tata motors with a sl of 320…target 245-255…
Good prices, how much profit.
Just curious to know.
If share market is falling individual investors can sell the shares and withdraw money.
What MF companies do if markets correct? They just sit and watch or they will also sold stocks and hold the funds?
Leaving stocks aside the policy will mean that a vehicle’s rc will not be renewed after 15 years IIRC, how is that gonna impact vehicle sales? Moreover there are small cities where people will keep on driving those unregistered vehicles. @guest_999
I guess there is going to be some state specific relaxations for certain categories(like rural population/essential services etc).
What is the policy?