TTM

[snowcat]

One thing I like to do is read "guru" teaser letters and figure out what their great stock pick is.  I have deciphered some of Mike Schaeffer's great picks, UTS.to (up 60% since I first posted it, and SYNM (which was great until today's collapse).  This one is by Christian DeHaener of Red Zone VIP letter:
http://www.agora-inc.com/reports/TRV/WTRVF952/

the highlights:


Here's what makes this company such a great investment:

Its motors division is India's only fully integrated automobile company - with a whopping 59% market share. Seven out of ten medium and heavy commercial vehicles are Indian. 2004 revenues: $4.0 billion.
Barron's Says...

'Even in the golden age of American capitalism, there was never a corporate empire like the one that the (x)-family interests control in India.'
This group holds the equivalent of 'Ford Motor, US Steel, General Electric, IBM, AT&T, Macy's, A&P, and General Foods - when each was approaching its heyday of growth and opportunity'
'Unfortunately for non-Indian investors, it's no easy matter to put one's dollars, euros, pounds, or yen to work anywhere in India. Foreigners cannot legally buy individual stocks on Indian stock exchanges.'

Its steel division has the lowest cost of steel producers in the world. World Steel Dynamics ranked them #1 in the world. 2004 revenues: $3.32 billion.
Its tea operation is the world's second-largest global-branded tea operation. 2004 revenues: $703 million.
Its IT unit is the leading Internet service provider in India. According to AMI Partners (a US based consulting firm) the IT market in India is expected to increase by 150% in 2005. 2004 revenues: $1.62 billion.
Add it up, and its 2003-2004 revenues were $14.25 billion - equivalent of about 2.6% of India's entire Gross Domestic Product!

If that weren't enough, the story gets even better...

This company is going to dominate India's Internet

Last month, this company received regulatory approval that'll lock up its position as the primary cable/Internet provider in India.

It just received approval to purchase 37,000 miles of transoceanic undersea cable systems of Tyco International (previously built and owned by AT&T). Although the cables originally cost $3 billion, this company bought them for $130 million. This Indian company just bought one of the world's best undersea cable lines at a $2.87 billion discount!

With this $11.87 stock, you'll own part of a company whose revenues in 2003-2004 were $14.25 billion, equivalent of about 2.6% of India's entire Gross Domestic Product!

No wonder Barron's says 'Even in the golden age of American capitalism, there was never a corporate empire like the one that (this company) controls in India.'

The numbers look great, the stock is in an uptrend and there is tons of potential in India.
http://finance.yahoo.com/q/bc?s=TTM&t=1y

Any thoughts...............

[David Randolph]

I was looking over the financials of the company and the chart and they are attractive. I will dig some more, possibly I will buy this one for the 3 Stocks on Fire Portfolio tomorrow.

Thank you snowcat 

[David Randolph]

I find about 15 TATA's traded on the Mumbai Stock Exchange (http://www.bseindia.com/price_finder/fr_pfdb.asp). Your article talks about all of them, but the TTM traded on the NYSE only represents Tata Motors, right?

So it is a bit misleading buying the stock on the NYSE thinking that company has all those businesses mentioned. Would you like to do some more DD?

Thanks snowcat 

[durjoy]

TATA is a very large Indian conglomerate and a very blue-chip firm.  It's very well-respected and does everything under the sun.  From steel to software and everything in between.

TATA Motors used to be known as TELCO.

TELCO (Tata Engineering and Locomotives Ltd) is a company of Tata group of companies which produces automobiles for the Indian Market. Its product range for goods and passenger transport.

Seven out of ten medium and heavy commercial vehicles in India bear the Tata mark, widely trusted in India. The Indica V2 - India's only fully indigenously designed and manufactured passenger car - has been a great commercial success.

(while I knew most of this, here's some attribution for posterity:
http://en.wikipedia.org/wiki/Tata_Group )

[snowcat]

I got the same type of info as durjoy.  It seems to be a multifaceted company:

Tata Motors Limited (TML) engages in the design, manufacture, assembly, and sale of commercial automotive vehicles primarily in India. The company manufactures passenger cars; multiutility vehicles; and light, medium, and heavy commercial vehicles for goods and passenger transport. It also manufactures related parts and accessories, as well as finances its vehicles sales. In addition, TML engages in information technology-related business; construction equipment manufacturing; automotive vehicle components and supply chain activities; machine tools and factory automation solutions; automotive retailing and service operations; and real estate and investment businesses. The company sells its products through its regional and sub-regional offices, as well as dealer outlets. As of March 31, 2004, it operated 29 regional and 36 sub-regional offices, as well as 400 dealer outlets. TML was established in 1945 as Tata Locomotive and Engineering Company Limited. The company changed its name to Tata Engineering and Locomotive Company Limited in 1960 and to Tata Motors Limited in 2003. Tata Motors is based in Mumbai, India.

Using the info that is in the "sales pitch", the ADR of Tata Motors comes up, but I will do more research.  (even as just the major car co. of India, I think this has great potential for the next year or so).

[snowcat]

I went to their website - very impressive.  The Tata group is huge!  I sent them an e-mail asking if an investment in the TTM adr is an investment in just the motor division or in in the entire group.

Tata for now!

(better than my other choice - "Show us your Tatas!")

(see....in the US, at least where I am, tatas are a slang for breasts)

[snowcat]

I got a reply from Tata Motors - An investment in TTM is an investment in the Motor Division only.  My bad.  I guess I got confused in the translation or something.

I asked Mr.Patel if there are any investments that would encompas the entire Tata Group.
(that I could buy in the US)

[stocky]

Certainly thats misleading. TTM does not represent the whole conglomorate.

[snowcat]

Got a write up in IBD' stocks in the news:

Sales growth has grown in the past 2 years from 2% to 28% to 60%.

Will be rolling out India's first 300 hp heavy commercial vehicle - used for mining and construction (ok, I know the Chrysler 300 is 300 hp, but this is India)

Tata's October sales jumped 17%.  within the total, commercial vehicle sales jumped 18%

http://finance.yahoo.com/q?s=TTM

India gains credibility as an emergent export titan

By Johnson
Tuesday, November 29, 2005
Posted: 02:45 PM EST (20:45 London)

At the Tata Motors (NYSE:TTM) plant in Pune, near Mumbai, a potholed "torture track" simulates the spine-jarring conditions of Indian roads. In five years' time, only one in every two of Tata's cars may need to go through the painful ordeal of preparing for life on the subcontinent's streets.

With a car coming off the end of the line about every 80 seconds, the group sees itself as competitive enough to make its biggest ever push into export markets, which could lift overseas revenues to half of the total by the end of the decade from a current 20 per cent.

"Made in India" is coming of age. With its call centres and software houses, India leads the world in offshored back-office services. It has so far failed, however, to fulfil its potential as a global manufacturing hub. India's exports account for just 0.8 per cent of world trade, compared with 6.4 per cent for China's, reflecting a myriad of infrastructural and regulatory barriers to competitiveness.

Read more

[dhiraj19]

My comments:
Being an Indian and following the businesses there. TATA group of companies is India's most respectable company with aggressive goals and businesses successful in India. They are on acquistions spree to become global platform. The company is honest, surprisingly in India, thats why Indians hold it high.

TTM is on NYSE. Some of their securities are listed in london stock exchange.

Indian Airlines, Air India, Indian Research Institutes ( one of the top 15 research institute in world) were once privately owned by TATA but were taken by government to augement itself globally as national property.

Tata Tea is no 2 globally after they bought Tetley. TTM is coming with concept car for Indians ( Vision of CEO).  Tata consultancy services is pioneer in software outsourcing. In India if anything is best and safe bet then it is TATA.

JRD TATA former CEO was awarded Bharat Ratna ( Highest award for any Indian) for his contributions to country.  He is my inspiration from Indian business leaders.

I just wanted to write as they are my favs in India.  As the market in India has opened, they are pioneers in bringing India to world map.

http://www.tata.com/

Also, I wanted to start something on terms on 3SOF for BSE as I can trade there but I cant find candlestick analysis for that stockexchange tickers. Any tips or comments to how to start exploring the option will be appreciated. (Indian Subsidiary of 3SOF  ) I am visiting India this December so will explore it more there.

[snowcat]

Lots of good companies in India - SAY, CTSH, INFY, REDF.......................

TTM covers just their car company - but with the growing middle class there they should continue to do well.

Do you know of any way to purchase shares of the other parts of TATA??

[dhiraj19]

Mumbai Stock Exchange. ( Bombay stock exchange).  It has all the group companies.

All other companies dont have that thing of TATA. INFY, REDY are two more good bets for NYSE. After reading whole thread, still gist of TATA group is missing.

They are in communication, research, software, hardware, steel, cement, consumer goods, coal, tea, investment. Any major international corporation when starts in India as joint venture due to FDI regulation, it starts with TATA ( most of the time)... AIG is tied with TATA in india for insurance, which is going to boom.

As goog started here after IPO last year or TATA consultancy services IPO was exactly same and is climbing like it.

I am surprised IBM and other consultancy services companies are afraid on Indian companies and TATA is one of them. I am waiting for TCS ( TATA consultancy services) ADR. GOing to buy it right away. Indians invest as long term in TATA in bombay stock exchange.

TATA sons is family interest in all these companies (5% total) they were increasing their stake now. All the companies are independently traded on Bombay stock exchange.

Catch: CEO of TATA is bachelor, after his retirement who'll head TATA is big thing. Noel TATA is the guy most prob. He was featured in Fortune maqzine for young business guy to watch.

[snowcat]

NICE GAP UP THIS MORNING - CHART IN A NICE UPTREND!

Their finances rival the best and biggest companies in the US.

http://stockcharts.com/def/servlet/SC.web?c=TTM,uu[w,a]daolyyay[dc][pb50!b200!f][vc60][iUp20,10,5!Ll14]&pref=G

[snowcat]

The GM of India rolls out a new car.  How does this company make money on a $2000 car?  Added extras like a Heated Curry Holder and an electric Turban Twister?

No!  They make their money through financing!  With a low PE and a booming middle class market in India, this is the place to be.

TATA is a huge conglomerate in India - they have their paws in Tea, internet, steel, real estate, consulting.....everything.  They are the largest company in one of the largest countries with an economy that is eclipsing the US!

This stock is good for another 20% gain......I see 25+

http://finance.yahoo.com/q?s=ttm

[dhiraj19]

The car is being marketed and sold in peculiar fashion. There was an article about this concept. Google it...

All material procured from China and also looking into using GE plastic.

There wont be any assembly plants but main parts will be sent to auto dealers ( bi-cycle concept in India). Auto dealers will be certified to assemble the cars. TTM is going to eat into assembly cost.
- Dhiraj