Archive for the 'TATAMOTORS' Category

Market matrix – Funding Tata Motors and DLF

August 27, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

The Tatas are going to reduce the size of issue for funding the Tata Motors future projects as they suspect that the sluggish market may not respond rightly. They would be footing part of the bill themselves and may sell some of their stake held in TCS, which is still substantial. TCS is a poor performer in market for this reason while it is in fine fettle. You may consider buying in to this scrip on down days. You may recall that at the high level of TCS, I had warned of this very possibility and around the time of Tata’s take over of CORUS.

Now, there is one more group, which is trying to fund the future need for funds by letting the promoter stake diluted. The DLF would be issuing securities worth about Rs 10,000 crores in form of ADRs/GDRs and when this exercise is over DLF would have become good bet for investment and is so right now if bought on down days. It seems DLF is going to be a company substantial in size of operation and a world level player.

Both the above cases are good examples of Indian markets and Indians companies maturing in to securing world-class status.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

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Buy TATAMOTORS on declines for long term

July 31, 2008

TATAMOTORS @ 415 on 30/07/08 gets 961 panch-tattva points. It is to be bought for long term in a few strokes on days when it declines.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Stock Matrix – Tata Motors and L&T

May 31, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

TATAMOTORS has decided to raise Rs 7200 crs for funding the JLR acquisition. It will be diluting the present equity and will be offered as rights in three types of instruments. It is step in right direction for it will safeguard the future of Tata Motors on one hand and since the JLR business will be a separate business owned by Tata Motors , the fruits will be all for TMs and without the liability beyond the initial contribution that too from the freshly raised equity. Needless to say that the TM will have tax saving on the interest out go till the conversion of debentures in to equity.

L&T has posted good results for the last quarter ended March 08. The top line growth assures that the infrastructure spending is growing whatever the impressions be.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

TATAMOTORS @ 623 on 15/04/08

April 16, 2008

TATAMOTORS @ 623 on 15/04/08 gets 1112 panch-tattva points and may be bought for medium term

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix – Jaguar Land Rover deal by Tatas

March 27, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

Tatas have clinched the Jaguar Land-Rover deal and it is going to be consummated in about three-four months. The price paid seems to be alright and is modest $2.3 bn but payable in all cash. The Tata group as well as its advisers must have seen the pros and cons and there are some benefits there for Tata Motors which fit in to their grand design of being a world class auto manufacturer.

It all adds a feather to the Indian cap but the share holders of Tata Motors would have to suffer for this glorious venture rather adventure of Tatas. Earlier the Corus deal cost heavily to the Tata Steel shareholders and it is now a confirmed reality. Long term may turn out in whatever way but the near term loss of this magnitude should not be downed the throats of powerless shareholders. As conveyed to you on many occasions earlier, the Tata group under leadership of the great Ratan wants to be as much out of India as here in terms of business presence . This is a clear dis-advantage for India as it is crying for investment to harness the true potential of the teeming millions who have capacity to give back incremental return on each of the further invested unit of capital. This is not possible else where in the world , at least in the present scenario. I would have preferred if Tatas had floated a new company here for the acquisitions abroad and asked for subscription from the willing people as well as chipping in their own funds . It would have been fair and justifiable. I think the robust cash flows in the Tata group companies and the taxability of the profits may have forced them into the arrangements presently made. As the Tatas have been conscientious business group for over a century, I can not accuse them of blatant disregard of shareholders interests.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market