TTM, is Tata Motors. They manufacture and market heavy, medium and light commercial vehicles, utility vehicles, and passenger cars. They have 2 business units: auto and other. The auto segment includes the business of automotive products consisting of all types of commercial and passenger vehicles. The other segment includes construction equipment, engineering solutions, automotive components, and some software operations. The Group also manufactures spare parts for vehicles, marine engines, casting, and forging. The fact that their businesses are diversified is a great sign and they can draw profits from several places. All of their plants are located in India. Most of their business comes from that country as well, however, they just acquired Land Rover and Jaguar. This will make their business and line-up of cars very strong for the future, especially when the economy turns around.
On top of that, the stock is at $13.34/share. That is the lowest it has been since December '05. The main reason for the decline in the last couple months is due to the recent acquisition of Land Rover and Jaguar. Tata had to shell out some serious cash for the two car companies and that puts their balance sheet in a less attractive position. (Whenever a company makes a large acquisition, it will trade lower in the short term b/c it dilutes their earnings and they have to raise capital. In this tight credit market it is even harder to raise money so that hurts Tata as well.) TTM pays out a dividend of roughly 2.8%, which is always a benefit to investors. The 52-week high is just above $21/share and so that gives us a good upside for some profit.
Here is the chart:
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