Tata Motors Limited (ADR) (TTM)

Current market not creating demand.

garbage.

Very short term play to catch the downturn in Indian stocks... don't get caught on the wrong side of this one in the long term.

Tata's main business line is in the lower end of the automotive market. The economic downturn has slowed the emergence of a sustainable lower middle class in India. While this firm will undoubtedly be a growth firm in the long-term, the firm has not positioned itself well enough in the intermediate term to cause me to believe that it will outperform the S&P.

6/15/9 IBD SHORT INDIA

the most expensive automaker

In a slowing automotive market, TTM is estimating to receive its profits in 09 to be half of 08 and is chopping into its capital expeditures plan. However, the stock price has quadrupled this year already.

I'm also heard that the P/E ratio is near 85 now and that they are overly-leveraged. Underperform.

> Price gone up around 200% during past few months. Most of the expectations are too high to get

> Nano booking received far less money. Will face cash flow issues

> Nano is likely to haunt profits for next 2-3 years

> Demand pickup in domestic market is short-lived.

> JLR bleeds heavily and likely to continue for next few months.

The latest run has made the stock overvalued with a growth-adjusted PE over 30.

I think this company is a bit over-hyped at the moment. They've got a product in high demand but can't produce just yet to fulfill orders which are already backed up. They've acquired a couple of Ford's affiliated companies (i.e. Jaguar) but created a HUGE amount of debt in doing so. Their highly publicized $2000 car won't even be available for a couple years in America so until then I can't see them making any significant gains, especially with so much debt to pay down.

most people in india live in waaaay overcrowded cities. more are moving there, too. it's hard enough to maneuver by foot let alone bike - how are cars supposed to get around? india already has a horrible congestion problem, and cars aren't getting around that. sure, the car is cheap, but it still runs on gas. couldn't they trying selling glorified ELECTRIC golf carts first?! plus, tata owns some luxury vehicles, too. don't suppose those will be making money any time soon. everthing about this company seems behind the curve. one star stock.

Buy American!!!!!!!!!

The purchase of Ford's Jaguar and Ranger Rover division will hold down profits for the near term.

I don't think People like what is happening with this Company.

They have A LOT of things on their plate, TOO many at this point in time.

Having said that I do believe that this stock will out preform the S&P.

Once people see the NANO roll out a New Hope will emerge and the Stock Price will reflect that NEW Enthusiasum.

I see a NEW LOW, maybe down to the High $7.00's and then a JUMP up to the $12.00 level.

GO NANO

high gas prices, smoking something when it purch'd jag and rover from ford

Growing Pains

To answer this question one must successfully forcast Indian politics. TATA will outperform in the short term only because it is a protected industry in a rapidly growing economy.

It can't compete on quality with Japanese or Korean automakers which make very small vehicles (that we do not see in North America). My mother rides a $2500 3-wheeled mobility scooter made in China. TATA is not going to develop a $2500 car -a tricycle with a lawnmower engine perhaps but not a car. A very cheap car would be a very unsafe one. It would not be tolerated in India.

The most likely source of "cheap" cars for India would be used Japanese cars (both drive on the left). Will India open its doors to competition? It will if it wants to export Rovers and Jaguars.