Tata Motors DVR discount makes it attractive, say analysts

Host of good news and a strong business outlook can lead to multiple re-rating for the stock

Investors seeking exposure to Tata Motors can consider taking the differential voting rights route, given DVRs’ attractive discount to ordinary shares, say analysts.
 
Tata Motors DVR last week closed at Rs 248, half the price of ordinary shares, which finished at Rs 498 apiece. Tata Motors is among a handful of Indian companies to have their DVR shares listed separately.
 
For the uninitiated, DVRs carry lower voting rights (10 DVRs have voting rights of one ordinary share) but offer higher dividends (10-20 per cent extra to compensate for the lower voting rights). The current discount is in line