Tata Tech can be added in a staggered manner if it comes below Rs 1,000: Gurmeet Chadha

economictimes.indiatimes.com:

Gurmeet Chadha, Managing Partner & CIO, Complete Circle Consultants, says “Tata Tech is a beautiful company with great digital engineering capabilities. But paying 70-80 times trailing right now with the market also being at a high and the sector facing a lot of headwinds does not make sense at this price to me. But if it comes lower, maybe in three-digits, I would probably want to add it in a staggered manner over a long term.”


What does one do now — chase the Tata Tech stock or just wait it out?
First, kudos to the Tata Group. This stock probably can be acquired in a staggered manner. This has bridged the premium valuation gaps which the Tata Group had with Elxsi, KPIT, although strictly not comparable. Difficult to really add at this price right now. I was hoping to add probably at Rs 800-900 and then maybe over a three-month period, if you get slightly better prices, it should be a core portfolio stock.

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It deals with almost seven large ER&D spenders in automotive space, almost five large spenders in renewable energy space. They have added Airbus recently which gives them access to aerospace and aviation business. Also, they are working very closely geography wise. In China, they are focussed on EV. In France, it is defence. Germany is more embedded software which is what KPIT and others do. So, it is a beautiful company with great digital engineering capabilities. But paying 70-80 times trailing right now with the market also being at a high and the sector facing a