Tata Motors posted excellent results with revenues up ~35% YoY and profit up to 2223 Cr vs only 22 cr last year in the same quarter. Its seems that the contrarian investments that the tata group had made during the downturn (Corus by Tata Steel and JLR by Tata Motors) is now paying rich dividends, as the global economy recovers.
These are fantastic results by Tata Motors and much beyond street expectation, despite the fact that Tata Nano is yet to take off. Could lead to serious re-rating of the stock over the next couple of quarters. Won't be surprised if the stock climbs 50%+ in the next one year. Key thing to watch would be how it absorbs commodity price increases in the next 2 quarters as a result of QE2
Showing posts with label Tata. Show all posts
Showing posts with label Tata. Show all posts
Tuesday, November 09, 2010
Sunday, November 08, 2009
Tata Nano
It has been two years since it was unveiled and four months since it was launched, I have yet to see a Tata Nano being driven on road in the national capital region. All the talk about the "Peoples' Car" flooding, overwhelming and choking the traffic system seem to have to have come from some over imaginative, fear mongering journalist. It may still happen, but not any time soon.
The Tata Nano has been in production since July, and during that time, Tata Motors has reportedly sold over 7,500 copies of its 100 K car. The Indian automaker has plenty of potential customers for its inexpensive little econo-gem, but production capacity is another matter altogether. Tata is producing the Nano with existing plant floor capacity until its new, reported (as per autoblog.com) 250,000-unit/year factory comes online at the end of March 2010.
Tata is also considering licensing the Nano to other automakers, with or without Tata branding. Tata Vice Chairman Ravi Kant reportedly mentioned at an awards function that the company would allow micro-assembly sites to build their own Nano within India, adding, "We call it Nano, they don't have to."
With recent reports of the cars catching spontaneous fire and murmurs or poor build quality, I still have doubts on whether the Nano will be as big a hit as earlier imagined even if capacity constraints are removed.
The Tata Nano has been in production since July, and during that time, Tata Motors has reportedly sold over 7,500 copies of its 100 K car. The Indian automaker has plenty of potential customers for its inexpensive little econo-gem, but production capacity is another matter altogether. Tata is producing the Nano with existing plant floor capacity until its new, reported (as per autoblog.com) 250,000-unit/year factory comes online at the end of March 2010.
Tata is also considering licensing the Nano to other automakers, with or without Tata branding. Tata Vice Chairman Ravi Kant reportedly mentioned at an awards function that the company would allow micro-assembly sites to build their own Nano within India, adding, "We call it Nano, they don't have to."
With recent reports of the cars catching spontaneous fire and murmurs or poor build quality, I still have doubts on whether the Nano will be as big a hit as earlier imagined even if capacity constraints are removed.
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