Tata Motors (NYSE:TTM)
is arguably one of the best-known Indian companies, due in no small
part to the fact that it is was among the first Indian companies to list
on a U.S. exchange. What's more, analysts and investors have long been
excited by the potential of selling cars and trucks to such a large and
growing economy.
While that all sounds good, the year-to-year reality has been more
challenging. Due in part to poor designs, questionable customer
experiences, and inefficient infrastructure, Tata has had considerable
challenges in its domestic passenger vehicle business, while the
commercial vehicle business has struggled in the face of tougher
economic conditions. That leaves the company even more dependent upon
Jaguar Land Rover – a growing luxury brand with good exposure to China
as well as recovering markets in North America and Europe. Many of the
metrics for Tata Motors suggest undervaluation, but a long-term cash
flow analysis suggests that investors may still be expecting more than
this company can deliver for the long term.
Please read more here:
http://www.investopedia.com/stock-analysis/090313/tata-motors-tale-two-businesses-ttm-f-cmi-bamxy.aspx
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