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Investment in Tata Motors

Discussion in 'Technical Analysis' started by sudheerpal2, Mar 28, 2018.

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  1. sudheerpal2

    sudheerpal2 New Member

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    Hi Shabbir Bhai / Other experts,

    What are your views on investing monthly SIP in TATA-M.

    Also I want to know what is TATA-M future as per your thoughts.
     
    sudheerpal2, Mar 28, 2018
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  2. shabbir

    shabbir Administrator Staff Member

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    Valuations are very favorable but the growth is missing. I will wait for results and more important management commentary before taking any decision.
     
    shabbir, Mar 28, 2018
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  3. mk27418

    mk27418 Active Member

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    Also I am very curious to know more about tata motors. Currently it is around 327. I feel more correction. if everything is ok then 300 can be a good one to buy.

    Sent from my Redmi Note 4 using DIY Technical Analysis mobile app
     
    mk27418, Apr 1, 2018
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  4. shabbir

    shabbir Administrator Staff Member

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    That is 10% more correction and it is quite likely.
     
    shabbir, Apr 1, 2018
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  5. bhat64

    bhat64 Apprentice

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    bhat64, Apr 3, 2018
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  6. shabbir

    shabbir Administrator Staff Member

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    Result is not yet out. Only production and sales number for March as far as I can see it.
     
    shabbir, Apr 5, 2018
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  7. bhat64

    bhat64 Apprentice

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    bhat64, Apr 6, 2018
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  8. mk27418

    mk27418 Active Member

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    Today Tata motors fell around 5% from 357 to around 339. while it was falling, I bought 30 units at price 248.1, 20 units at 244.1 and 20 units at 240.1. but I do not understand the reason of fall. also do not understand if my decision is correct? please light..
     
    mk27418, Apr 16, 2018
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  9. rcube1972

    rcube1972 Member

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    Fair price of Tata Motors is around 400-410 and the stock is fundamentally strong. So there is no apparent reason for price to fall. In an ideal world, share prices should move in horizontal straight line with unidirectional movement and no retracement. But we don't live in an ideal world. So price constantly moves up and down.

    Just my 2 paisa.
     
    rcube1972, Apr 16, 2018
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  10. shabbir

    shabbir Administrator Staff Member

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    The fall is mainly due to the fact that it will announce job cuts in UK. The fall is because of the earnings outlook reason but at some point it will become a buy at a price. You may have purchased the stock in the fall and so it will need lot of patience as well as conviction to keep holding. The conviction won't come unless you have done the due research. Ideally you could have waited and purchase in the leg up than in the leg down. I like doing it that way.
     
    shabbir, Apr 16, 2018
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  11. saptarshi_sachin

    saptarshi_sachin Responder

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    Tata Motors is in a downtrend for some time now with bad news all around like UK JLR job cuts and some brokerages downgrading the stock, cutting down target prices. CLSA has downgraded Tata Motors to a target price of 330 per share recently, and I believe that is the reason for the recent sharp fall, because many FIIs and FPIs follow these ratings closely.

    Tata Motors has not seen growth in domestic market for past 2 years and has consistently lost market share to other companies. It has faced tough competition from peers in domestic market both in the commercial vehicle and passenger vehicle categories. Going ahead also I think the pressure is likely to continue for some time, because there is a lot of competition specially in the passenger vehicles segment, with almost every company stepping up the competition. Tata Motors need to innovate and bring back quality vehicles.

    Tata Motors has strong support @300-ish levels. One can accumulate the stock there. 280-300 will be a strong zone for Tata Motors which it might test. The commentary from management will be important also this time as said above.
     
    saptarshi_sachin, Apr 20, 2018
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  12. bhat64

    bhat64 Apprentice

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    I am waiting to buy at 300 ish levels. Historically it has bounced back from these levels so waiting to see if it repeats..I like their new management, their new products Tiago especially, the new high tonnage trucks, and their massive market share in MCV..


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    bhat64, Apr 22, 2018
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  13. mk27418

    mk27418 Active Member

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    mk27418, Apr 22, 2018
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  14. bhat64

    bhat64 Apprentice

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    Excited to buy a big chunk of Tata Motors today. I think I am fine with the current price although was looking at 300 level. The strong results out do it and may not get to 300 unless a 1000 point fall in Sensex IMG_2316.JPG


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    bhat64, May 2, 2018
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  15. shabbir

    shabbir Administrator Staff Member

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    You purchased possibly in the morning up but none the less it is a good stock to own now with things falling in place.
     
    shabbir, May 2, 2018
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  16. saptarshi_sachin

    saptarshi_sachin Responder

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    This is just the domestic numbers which came out yesterday, showing improvement.
    Tata Motors is more of a global play nowadays and the US, UK, China JLR numbers are very very important for Tata Motors. These numbers are likely to come out anytime this week, and stock will react to the numbers.

    More importantly, results this time and commentary is going to be important for Tata Motors. Bad results and hopeless commentary can drive Tata Motors down another 10% easily.
     
    saptarshi_sachin, May 2, 2018
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  17. chaitanya_mella

    chaitanya_mella Contributor

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    Is it better to own the DVR over the normal shares?



    Sent from my iPhone using DIY Technical Analysis mobile app
     
    chaitanya_mella, May 3, 2018
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  18. shabbir

    shabbir Administrator Staff Member

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    shabbir, May 4, 2018
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  19. saptarshi_sachin

    saptarshi_sachin Responder

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    As I shared earlier, Tata Motors tanked another 10% from 330 to reach finally 295-300 levels. It is psychological level, stock continuously hammered down before results. It held onto 300-ish levels and today we saw some sharp recovery.

    Going to declare results tomorrow, fingers crossed. Tata Motors has some new launches of JLR in India soon, hopefully it is a good news. The commentary in results is going to be important as Shabbir pointed out earlier. Again, after results, hopefully this time also the domestic numbers from them is going to be good. Keeping fingers crossed before results!!!
     
    saptarshi_sachin, May 22, 2018
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  20. bhat64

    bhat64 Apprentice

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    bhat64, May 23, 2018
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