Tata Motors (TTM: NYSE) Driving Success in India and Your Portfolio

Tata Motors (TTM: NYSE) describes itself as India's largest automobile company, with revenues of Rs. 24,000 crores (USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. What can all this mean to your portfolio? Let me show you.

Anyone who follows the market knows that India has been one of the more lucrative places to search for investment opportunities overseas. Accompany this with an industry that has seen a good steady money flow and a company that has solid fundamentals (including Company Growth Ratio, Acc. Dist Current, Debt/Equity Ratio, Price Rank, and of course Group Rank) and you have yourself a company worth your attention. For long term investors, no further analysis needed.

For technical traders, we can see the bullish flag before breaking up yesterday. I apologize now for not getting this post out sooner as the stock has been on my radar list for a week now. Today the market got hit pretty good and yet TTM held its ground. For traders, look for the next leg up, breaking out of the bullish flag, to continue. For investors, I really like this stock even more for the long term as I see great potential here and feel the company is a leader in a booming area of the world. What do you guys think of this one?

Investor Term of the Day: Foreign Exchange Rate
Rate at which one currency may be converted into another. also called rate of exchange or exchange rate or currency exchange rate.

1 Comments - Post your comment below.

Tarik
Oct. 5, 2006

Tata is definitely a solid company with lots of growth potential. I bought some shares last month and plan to hold on to them for a couple of reasons. As you said before, there's solid growth in India. Wages are increasing, so consumer spending will increase. But I liked them for a more discreet reason: their focus in Africa. They are gaining ground on the African car market share, and just by looking at South Africa, there's a lot of growth ahead. I was a little worried about the new Suzuki Factory in India, but Suzuki is probably chasing lower marginal costs.