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Old 1st July 2018, 09:10   #241
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Default Re: Guide: Investing in shares of the automotive sector

Dear Smartcat

Please give some expert comments on Tata Motors, I am unable to see any reason behind the nosedive after nosedive it is taking. Is it worthwhile investing in this company? What you think is the reason behind this behavior of the stock?
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Old 1st July 2018, 09:37   #242
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Please give some expert comments on Tata Motors, I am unable to see any reason behind the nosedive after nosedive it is taking. Is it worthwhile investing in this company? What you think is the reason behind this behavior of the stock?
Two things:

1) Trump tantrums
http://www.team-bhp.com/forum/intern...r-imports.html

He has been threatening to impose tariffs on EU cars for almost 6 months now. Even Motherson Sumi is down 30% since international revenues are significant. Note that M&M, Ashok Leyland & Maruti share prices have not been affected.

2) Tata Motors will take on more debt
http://www.team-bhp.com/forum/intern...ounds-r-d.html

Last week's fall is because of the above news. Whenever interest costs cross over 25% of operating profits, it is better to get out. For Tata Motors, it could happen over the next 3 years especially if there are sales hiccups.

ICICIDirect.com is still quite positive on Tata Motors, because of low valuations.
http://content.icicidirect.com/maili...date_Jun18.pdf
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Old 1st July 2018, 19:21   #243
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Default Re: Guide: Investing in shares of the automotive sector

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To invest in a stock, I need 3 or 5 year sales data, balance sheet and annual reports. I especially need data on how much dividends they pay out of their profits. Since this data is not available for IPOs, I avoid them.

You can get the data from SEBI data base of DRHP of any company that comes out with public offer. Minimum 3 years of historical data (Most companies give 5 years data) is given.

Link for Varroc RHP :- https://www.sebi.gov.in/filings/publ...ted_39351.html
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Old 22nd July 2018, 22:31   #244
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Default Re: Guide: Investing in shares of the automotive sector

Hi Smartcat,

What do you think of the valuations of Ashok Leyland after the big fall last week? I think the increased load limits of trucks, reduced market share from the results last week coupled with the already bad sentiment of the mid/small cap stocks took it to these levels.

A good buy at these levels to load up for a 3-5 year horizon? I'm wondering if the increased spending in infra (for higher demand of trucks) and the move to EV fleet buses in the coming years can benefit this stock.

Last edited by arun687 : 22nd July 2018 at 22:32.
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Old 5th September 2018, 14:15   #245
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Default Re: Guide: Investing in shares of the automotive sector

Motherson Sumi seems to be nosediving in market - hold/sell ?
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Old 5th September 2018, 22:12   #246
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Gentlemen, keep your powder dry. Till May 2019 (General election results), markets could give you lots of opportunities to buy existing or new stocks. No need to exit stocks though. Just spread your investments across the next 8 months.

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What do you think of the valuations of Ashok Leyland after the big fall last week? A good buy at these levels to load up for a 3-5 year horizon?
Somehow I missed this. Looks like Ashok Leyland has gone up 30% since you made this post

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Motherson Sumi seems to be nosediving in market - hold/sell ?
Hold. When a stock has gone up 8x in 4 years, a 25% drop from its peak is par for the course. All is well with the business, valuations and financials. They are continuing with their strategy of making small to medium sized acquisitions.
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Old 8th September 2018, 11:34   #247
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Default Re: Guide: Investing in shares of the automotive sector

With Maruti stock correcting to 8700 levels from 9832 (July), I guess it's good time to accumulate few more Maruti stocks considering they are planning to launch all new WagonR next year along with electric variants of WagonR and Swift by 2020.

They are also planning to test over 50+ electric vehicles prototype in India and plan to launch post-2020 onwards.

This seems to be a promising progress for the manufacturer in an era where e-vehicles are trending.

https://auto.ndtv.com/news/maruti-su...a-soon-1912914

PS - What's your take guys on Tata motors these days? With gaining popularity from the mass-market segment in terms of new Nexon/Tigor/Tiago, I guess there is a good chance of upwards rally for Tata stock? They already have electric production ready Tiago in their portfolio and also planning to test new e-vehicles soon.
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Old 8th September 2018, 11:52   #248
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Default Re: Guide: Investing in shares of the automotive sector

RMG Alloy Steel Ltd. popped up in one of the lists of ICICI Direct. I don't exactly recall which. Does anyone have a view on this stock?
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Old 8th September 2018, 15:00   #249
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Default Re: Guide: Investing in shares of the automotive sector

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PS - What's your take guys on Tata motors these days? With gaining popularity from the mass-market segment in terms of new Nexon/Tigor/Tiago, I guess there is a good chance of upwards rally for Tata stock? They already have electric production ready Tiago in their portfolio and also planning to test new e-vehicles soon.
I have a feeling that Tata can do a Maruti in the coming days. The upcoming products are clearly better and more suited to our tastes. Once oil prices cool down, then Jaguar and LR can improve their sales as well. This will help them.

Its probably a 5 year 5x story but it will all depend on their execution as well as a bit of luck going in their favor.
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Old 9th September 2018, 12:22   #250
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Default Re: Guide: Investing in shares of the automotive sector

Their track record is impressive. No doubt about it. Even the valuation looks ok. (Purely based on PE. Although 25 PE for a B2B supplier is debatable) . But valuation based on market cap (63000 crore) looks very high to me. ( Considering this is a B2B supplier to OEMs. If I am not wrong, they rely heavily on a few clients. This might have changed in the recent past. I am not very sure) . Look at this way. Forget about PE, earnings etc. Would you be interested buying the whole company at 63k crore market cap?.
A couple of other things I noticed. They have way too many subsidiaries. They carry cash on balance sheet. Why not put it in a liquid fund?.
PS: I am not saying this is bad company.

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Hold. When a stock has gone up 8x in 4 years, a 25% drop from its peak is par for the course. All is well with the business, valuations and financials. They are continuing with their strategy of making small to medium sized acquisitions.
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Old 12th September 2018, 09:46   #251
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Default Re: Guide: Investing in shares of the automotive sector

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With Maruti stock correcting to 8700 levels from 9832 (July), I guess it's good time to accumulate few more Maruti stocks considering they are planning to launch all new WagonR next year along with electric variants of WagonR and Swift by 2020.

PS - What's your take guys on Tata motors these days? With gaining popularity from the mass-market segment in terms of new Nexon/Tigor/Tiago, I guess there is a good chance of upwards rally for Tata stock? They already have electric production ready Tiago in their portfolio and also planning to test new e-vehicles soon.
The market seems to be a bit volatile these days amidst rising petrol price and depreciating rupee.

Maruti stock already down to 8400 in less than a week since I wrote the above post.

I guess it's getting even better for people who would like to 'accumulate' Maruti stock in their portfolio. Keep a track on the stock price and start filling the bucket. Slowly

PS - Same goes for Tata Motors. I don't know why but I am bullish on this particular Tata stock.
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Old 16th September 2018, 08:41   #252
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Default Re: Guide: Investing in shares of the automotive sector

100 bucks invested in the Motherson Sumi IPO of 1993 would be worth Rs. 3.22 lakh today . If you had bought that instead of a Maruti 800 A/C model then, you'd be sitting on a pretty kitty of ~60 crores today.

Source & Full Article

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Auto component maker Motherson Sumi Systems Ltd on Wednesday said its stock has given a return of over 3.22 lakh to the shareholders in 25 years of being listed in the stock market.

The company, which made its debut on the Indian bourse in September 9, 1993, saw its market capitalisation surging multifold from Rs 238 million to Rs 639 billion today.

It claimed that Rs 100 invested in its shares at the time of IPO, has turned into well over Rs 322,881 in the span of 25 years.
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Old 21st September 2018, 12:16   #253
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Default Re: Guide: Investing in shares of the automotive sector

Hi Smartcat ... This is an excellent thread that has got me interested to invest in the stock market for the first time. The case studies, examples and analysis of the shares of various companies throughout this thread have helped me greatly.

Now that I am looking to invest, what do you suggest as a good stock to acquire as a beginner? Do you think "Jamna Auto Industries Ltd" would be a good option to start with?
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Old 21st September 2018, 13:34   #254
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Default Re: Guide: Investing in shares of the automotive sector

Maruti stock under 8000!

Accumulate now for existing holders, buy now for new investors

Offer valid till stocks lasts
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Old 21st September 2018, 15:11   #255
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Default Re: Guide: Investing in shares of the automotive sector

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With Maruti stock correcting to 8700 levels from 9832 (July), I guess it's good time to accumulate few more Maruti stocks considering they are planning to launch all new WagonR next year along with electric variants of WagonR and Swift by 2020.
Those who had bought Maruti at >9k levels and want to average, this could be one of those entry points. The stock was trading at 7800-8000 level today.
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