CNBC-TV18’s Executive Editor, Udayan Mukherjee - Today all eyes will be dotted on Tata Motors and JLR but the view doesn’t change, I think it’s simple to analyze what the deal is. In the near-term it would be seen as earnings dilutive and valuations might just get crunched a little bit for Tata Motors. In the long-term, we will see strategically what it can do to Tata Motors but that’s over the next 1-1.5 years.

In the near-term this will be a bit of a straw on the Tata Motors stocks’ back and auto is not a bad space now I suppose, because there is contrarian buying happening there. But because of this deal, which in the near-term at least for the next year and year and a half being dilutive and being balance sheet dilutive as well. You are probably better off looking at some of the other stocks for near-term out performance. For the same kind of 10-11 P/E multiple, I think Maruti probably is a cleaner bet than Tata Motors at this point in time.

Tata Motors is not an expensive stock, it’s got valuations on its side to be sure but encumbered stock typically tend to drag a bit before they strike out outperformance.