Wat is the prospect of tata motars at about Rs 400 per share?

Question

Wat is the prospect of tata motars at about Rs 400 per share?

Answer 1

Better avoid the Auto sector now after hike in CRR and repo rates, the banks have started increasing the lending rates which will effect the interest sensitive stocks like auto,realty,banking etc.Check more details at :

http://www.livesharemarkets.com/

Answer 2

a dim prospect as steel prices / interest on loan in on higher side.

Answer 3

Experts feel that the markets have still downside left at it.  Do not get carried away at short term rallies that are seen in the markets.

You can get tata motors for a lesser price on waiting.

Answer 4

I would answer the question assuming two possible scenarios for your investment.

The first scenario is a long-term one. TATA motors is a major company for the TATA group as such and Mr Ratan TATA has much to loose in long-term if he goofs up on this company. And given the historical results the TATA group has delivered, you can say that it makes sense to buy TATA motors at these levels.

In the short-run, the share may see new lows because the company doesn't have any new models ready for launch where as the competiton is coming up with many new models. TATA Nano is a media hype and will not drive the bottom line for the company. On the contrary, it will be a drag on the ROE for the company. And coupled with lack of new models, the interest rate hike will dampen sales. And on top of that TATA motors has taken an exposure to the UK and European markets through Jaguar and LAnd Rover. It is a dismal time to do business in those economies now as they are slowing down.

In a 1-2 year horizon, I don't see any fundamental upside for the company lest any miracle happens. But as I said, bigger people have their fortunes at stake if this continues and hence the long-term has to be secure :)

Answer 5

Tata Motors is a good stock and the underlying corporate is a leader in the automobile sector with products which encompass all catagories of vehicles.

In addition they also have JLR under the belt.  Some analysts would opine that this was not a good idea.  However, as investors it is not our job to get into the minds of the organisation.  Further, there is a requirement of funds which we expect would be organized through a rights issue.

The CMP of the stock is at about INR 400 which is above its recent low of INR 373.

Now the buy, hold or sell call would depend on your investment time horizon.  Also keeping in view that there are systemic factors at play that may depress the growth rate of not only Tata Motors but most corporates across most industry and sector groups along with the automobile sector as well.

Happy investing,

Akash

http://www.narachinvestment.com

http://www.narach.com

http://finance.narach.com

Answer 6

its not advisable to get into auto sector now as interest rate hike have made auto loans costlier so sales will take a dip. Only in the next quarter when inflation goes down n interest rates r relaxed and Tata's will launch its Nano then only it will be a good time to buy its shares.