SIP in these 3 Tata stocks to create a lot of wealth in next 2 yrs: Sanjiv Bhasin

TCS should be bought whole hog. I am looking at a Rs 10 lakh crore market cap and beyond on TCS, says the Director, IIFL Securities.


What is your view on Tata Chemicals in terms of opportunity going forward?
The real opportunity was there when the split happened and you realised that Tata Consumer was a gold mine. The stock from Rs 200 is up to Rs 550 and look at the results. It is telling you that the demarking of business was a very big positive. I still think Tata Chemical is a low valued, extremely attractive stock and what is happening is the re-rating of a lot of the Tata companies. As a disclosure, we have both these stocks in our portfolio, along with Tata Power which we think is a dark horse, given the extent of positives which are seen across the board on power.

I would advocate all these three stocks as a SIP at these prices rather than jumping whole hog because they have run up quite a bit. But I am very sure that all three Tata stocks – Tata Power, Tata Consumer and Tata Chemical are going to make a lot of wealth in the next two years.

Is it just a coincidence that with the exception of Tata Motors, all Tata Group companies which represent very different businesses and have got no connection whatsoever, are going up?
They are proxy to the markets. The Tatas are the oldest group in the country which are also most professionally managed. There was a re-rating because the market realised the importance of the unbundling. Mr Chandra has demarcated all the businesses individually. TCS is a no-brainer, people are talking of IT and Infosys. I think TCS should be bought whole hog. I am looking at a Rs 10 lakh crore market cap and beyond on TCS.

Tata Consultancy Services again will be seeing a lot of value creation, as would Tata Power. Indian Hotels was available at a huge discount given that the problem was escalating. It is a re-rating of the market and Tatas have led from the front. I think they will continue to lead on the upside. 2021 may see the Tatas create a lot of wealth which has been the missing link in the last few years. All thanks to Mr Chandra’s vision and demarcating of companies.