Tata Motors Limited (ADR) (NYSE:TTM)

CAPS Rating: 4 out of 5

Owners of Jaguar and Range Rover, India-based Tata Motors designs, manufactures, and sells automobiles and all things machine-related.


Player Avatar blue2fire (< 20) Submitted: 2/16/2011 4:12:45 AM : Outperform Start Price: $25.46 TTM Score: +3.16

Where do we start with this company?

Well, the thing closest to our country, subsidiary Jaguar Land Rover. This is a company that you will find has made great strides in quality and desirability in the last few years. Tata have managed to keep the revival plan on track, take advantage of new Ford engines and come up with excellent management from Porsche UK and GM Europe/BMW AG to run it. Jaguar will have a modern full range and the tiny fuel efficient Range Rover, Evoque, is certain to be a smash hit across the world. They will keep target to triple volumes in the next decade.

In India, TATA makes the most commercial vehicles and also owns Spanish company Hispano and Daewoo commercial. This is a good market for them, one they dominate particularly in the micro segment (check out the TATA Ace). The Nano isn't selling well but this is a marketing problem not helped by a few fires caused by third party electrical equipment (fixed promptly with a semi recall). The other cars are basically indigenous platforms with a few own make and a few FIAT diesel engines from a part venture. They seem to sell well and are positively looked upon by Indian Consumers for good reliability, value and ruggedness (completely designed with the country in mind). This, plus the fact that they just reported a blowout quarter on all cylinders except a problem with Daewoo makes it easy.

A few extras are the (hopefully) upcoming Jaguar/LR China JV and aggressive Debt repayment (down 16% in 09-10) is very tempting. This is a rare publicly accessible India play that i can act on.

Long stock.

Featured Broker Partners