What is your view on Tata Motors?

[megha saini]

Hello members,

I am very keen to know about the future of Tata Motors.

According to me, it stock prices have corrected more than 40% since February. And China's slowdown is also impacting Tata Motors sales of JLR (Jaguar Land Rover).

I am bullish on this stock as it is trading trading at its 1 and 1/2 year lows as its P/E is much lower than the industry as well as its competitors' P/E.

So, help me deciding its future as I am a newbie and want to know more before buying/selling the stock.

 

[padiyaraa]

Not seems to be a safe bet now, the stock can touch 160 level
or even down in the next 6 months’ time.
Remember the market saying, about the falling knife.....
Do not try to catch the falling knife, and the market is with
so much ups and downs will be there to induces you lust,
but finally the business has to improve for the stock price to move up,
by that time, nooooo.....
before that, it will give a sign for the astute.

AUTO Index is also showing weakness and due for major correction

The charts are normally using for my threads only, so excuse me if I delete this later.

 

[amit.patel26]

True. Even I am bullish on the stock. The management of the company coupled with the fact that it's JLR is huge in China and its sales are picking up in north America as their economy recovers, things are looking good for them...their P/E is very low compared to other companies in their sector...plus its rolling out new models of its cars and new products.... Also their venture into defence is something to keep an eye on...BJP govt. Has always been big on expenditure on the Armed forces..and PM modi's pro pvt. Companies outlook should benift it...my only concern is China...if they have a big crash it could threaten them as 29% of JLR sales or so come from there...but their sales growth elsewhere like North America and EU...with Indian Defence contracts should offset any big problem in China....

 

[timepass]

Take a look at this news. I agree with padiyara that it is going down further. As his chart shows, it has gone up from 40-50Rs range (in 2008) to 600+. So, not much surprise if the correction is more than 50%.

http://www.bbc.com/news/uk-england-birmingham-34020749

 

[TradeJoker]

China blast affected http://m.moneycontrol.com/news/business/5800-jlr-cars-at-china-port-hit-by-blasts-tata-motors_2680021.html

 

[umeshmandal]

Hello members,

I am very keen to know about the future of Tata Motors.

According to me, it stock prices have corrected more than 40% since February. And China's slowdown is also impacting Tata Motors sales of JLR (Jaguar Land Rover).

I am bullish on this stock as it is trading trading at its 1 and 1/2 year lows as its P/E is much lower than the industry as well as its competitors' P/E.

So, help me deciding its future as I am a newbie and want to know more before buying/selling the stock.

Surely a weak stock at present if we look at the charts. But such stock of good pedigree tend to bounce back faster when mkt recovers.
You can watch its weekly charts and in any week when it closes above the previous week's high, start accumulating on rise ! BTW, I would suggest to invest in DVR rather than in stock.

 

[megha saini]

Not seems to be a safe bet now, the stock can touch 160 level
or even down in the next 6 months’ time.
Remember the market saying, about the falling knife.....
Do not try to catch the falling knife, and the market is with
so much ups and downs will be there to induces you lust,
but finally the business has to improve for the stock price to move up,
by that time, nooooo.....
before that, it will give a sign for the astute.

AUTO Index is also showing weakness and due for major correction

The charts are normally using for my threads only, so excuse me if I delete this later.

Thanks Padiyaraa. Your views were highly significant and helpful.
But as you know after the Black monday, the share prices of Tata Motors have rebounded approximately by 6%. Whats your take on this?
And it started rising before China took the step of releasing liquidity in its economy.

 

[padiyaraa]

Thanks Padiyaraa. Your views were highly significant and helpful.
But as you know after the Black monday, the share prices of Tata Motors have rebounded approximately by 6%. Whats your take on this?
And it started rising before China took the step of releasing liquidity in its economy.

An oversold condition, that's all.

Price of an asset, if fallen to such a degree on high volume, then the oscillator will reach to the lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may generate a buying interest for investors. That can happen to any stock any in time frame, as I mentioned the ups & downs. Nothing else is happening here. And one more thing, here I am not underestimating the caliber of tatas, they can bring business over the night, in that case the view can be changed. BUT current scenario is too pity to comment.



I am going for vacation, see you all later.