CMP- Rs.468
Date- March 10th, 2005
Sector- Automobile
52 Week H/L- Rs.574/358
Market Cap- Rs.17,009.3 Crs
1) Tata Motors is the world's fifth largest medium and heavy commercial vehicle manufacturer, produces more than 150 commercial vehicles with a range of light, medium to heavy-duty trucks, bus and tractor-trailers. The company improved its market shares in both commercial vehicles & passenger vehicles and achieved significant growth in exports during Dec04 quarter.
2) However on operating front, operating margins continue to remain under pressure at 13.3% in the quarter ended Dec. 2004 as against 14.3% in Dec.2003.
3) At current levels company is trading at valuations which are at par with its peers in industry, hence, any fresh addition of this stock should be avoided.
Developments and Impact
Tata Motors to acquire a 21 percent stake in Spanish bus manufacturing company Hispano Carrocera S.A. (HC) for Rs 70 crore with an option to buy over the company completely in the future. The total deal consists of equity, debt and technology licensing. The alliance with Hispano Carrocera will give Tata Motors an access to its design and technological capabilities to fully tap the growing potential of this segment in India and other export markets. Besides, it will help Tata Motors provide a foothold in developed European markets. Hispano Carrocera has a market share of 25 percent in the bus market in Spain. It has its own in-house product development facility for buses and coaches. The acquisition by Tata Motors is yet another sign of the companys overseas push.
Financials
Earnings of Tata Motors grew by 37 per cent during Q3 FY05 to Rs 8.74 per share against Rs 6.38 per share in the same period a year ago. The growth in earning gains more significance as the same has been achieved when the company as well as the industry has been facing problems of increased Raw Material cost.
Valuations
At the current market price of Rs 462, Tata Motors is quoting at a Price to Earnings ratio of 14.48 x to its TTM ended Dec04 earnings.
Cheers,
nkpanjiyar
Date- March 10th, 2005
Sector- Automobile
52 Week H/L- Rs.574/358
Market Cap- Rs.17,009.3 Crs
1) Tata Motors is the world's fifth largest medium and heavy commercial vehicle manufacturer, produces more than 150 commercial vehicles with a range of light, medium to heavy-duty trucks, bus and tractor-trailers. The company improved its market shares in both commercial vehicles & passenger vehicles and achieved significant growth in exports during Dec04 quarter.
2) However on operating front, operating margins continue to remain under pressure at 13.3% in the quarter ended Dec. 2004 as against 14.3% in Dec.2003.
3) At current levels company is trading at valuations which are at par with its peers in industry, hence, any fresh addition of this stock should be avoided.
Developments and Impact
Tata Motors to acquire a 21 percent stake in Spanish bus manufacturing company Hispano Carrocera S.A. (HC) for Rs 70 crore with an option to buy over the company completely in the future. The total deal consists of equity, debt and technology licensing. The alliance with Hispano Carrocera will give Tata Motors an access to its design and technological capabilities to fully tap the growing potential of this segment in India and other export markets. Besides, it will help Tata Motors provide a foothold in developed European markets. Hispano Carrocera has a market share of 25 percent in the bus market in Spain. It has its own in-house product development facility for buses and coaches. The acquisition by Tata Motors is yet another sign of the companys overseas push.
Financials
Earnings of Tata Motors grew by 37 per cent during Q3 FY05 to Rs 8.74 per share against Rs 6.38 per share in the same period a year ago. The growth in earning gains more significance as the same has been achieved when the company as well as the industry has been facing problems of increased Raw Material cost.
Valuations
At the current market price of Rs 462, Tata Motors is quoting at a Price to Earnings ratio of 14.48 x to its TTM ended Dec04 earnings.
Cheers,
nkpanjiyar