$12.15
-0.06 (-0.49%)
Tata Motors Limited (ADR) (TTM)
CAPS Rating:
The Company designs, manufactures and sells vehicles, spare parts for its vehicles and engines for industrial and marine applications as well as construction equipment and information technology services.
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Great company but not one you want to own until Q1, 2010. Cash flow issues with 2.3 B due in July, hype over Nano, a car that will sell only 50K units @ 2000.00 in 2009. Two new plants (one abandoned) cost 800 million to build. Main plant won't be on line until 2010. Interest rates in India @ 12%. ..oh yeah, it's now falling from a 50% run up too. Don't buy this for more than 3.50 per share.
With that said, this IS a company you will want to own in 2010 or 2011. Fine family. integrity that is not known by stateside car makers. Cheap labor. Good demographics.
i disagree, strongly, based on the following:1) I live in india and track the news daily regarding tata. 2) "the news" in india, unlike the states and the rest of the world, is pretty damn unregulated here; i.e., not controlled by a few media old boys who spoon feed you what they want you to hear. and yes, even with business.3) consumer sentiment is damn strong on the ground. everyone i know wants a nano, or have begun looking more closely at tata's other models, because tata has fantastic financing tie-ups and marketing strategies right now. 4) you know why? look at some recent multi-billion dollar tie-ups with american & other foreign companies--TATA CONSULTANCY SERVICES. 5) 800 million for the srinigar plant was a blow, yes. but the way business is run in india, ratan tata will recover three times that in the favors and closed-door deals that go on. facts of life in india that don't translate in the west. look at the deal gujarat is giving him.6) to summarize: you have a multi-pronged company headed by a family that self-invests both in its own company and in its nation. no way in the world would tata be allowed to fail, in india or abroad. even the trouble over the uk gov't financing stipulations for J/LR will end up in tata's favour, mark me on that one. tata is positioning itself for a GLOBAL move in the next 3-5 years, and it's not just on the nano. i see TTM coming back up above 20 by 1Q 2010, and i'm in for 4-figure shares at 3$. anyway, that's my 2 cents.
Ratan Tata has ran this company very well and he has contributed a lot to common people in India. People of India has utmost respect for him.