Tata Motors among 2 high-conviction stock ideas for 6-12 months

Motilal Oswal's Hemang Jani is bullish on

Tata Motors

and

Gujarat Gas

for the next 6-12 months. Edited excerpts from his interview with ET Now:

Which stocks do you think can move up by 15-20% before this year ends?
I would go with two specific names. The first one is Tata Motors, which is a high beta name. Look at the way the passenger vehicle numbers are shaping up globally. Given the incremental data points in the domestic market, Tata Motors is one stock where there can be a significant upside potential.

The second one is Gujarat Gas. Although it has been a known story but it can surprise. Look at its recent quarterly performance, volumes and margins. We think that this can become a very interesting story from even a 1-2 year perspective, given the thrust on gas and the way the government is going ahead with certain reforms. So these are the two names where we have extremely high conviction over the next 6-12 months.
Everyone is saying that sugar is the new steel now. Is there merit in believing it?
The entire commodity space is seeing a lot of renewed action. As compared to the previous commodity cycles, things are different this time. Sugar is not just about a pure commodity-based cycle. It is more to do with what the government is doing in terms of ethanol and the way they are aggressively preponing their schedules of the mixing norm. A combination of better pricing, the ethanol story and good balance sheets can make things much better for sugar companies. Balrampur Chini Mills has a higher component of ethanol in their overall scheme of things. Companies like this would definitely get re-rated from here on as well.

Have they (sugar stocks) got re-rated already or do you think there is still more headroom left for these stocks to get re-rated?
A part of the re-rating has already happened and there has been a run-up in stock prices. But once you see the hard core data and numbers getting reflected in the next 2-3 quarters, there would be more upsides. Historically, we have seen that sugar companies can become 8-10-12X in a bull market cycle. We have not seen that kind of a run-up in sugar names yet. So I think there is some more room on the way up.