Swashbuckling Tata Motors

Tata Motors has been one of the prime companies in focus from the past one year or so. The hype initially started with the motors showcasing the Nano. As Ms.Mamata Banarjee's protest continued in Singur, it came as a major roadblock to the profitability of the company and it was left in choppy waters. Tata Motors collapsed from Rs.450/- a share to a meager Rs.122/- in flat 2 months. The company swung into losses since then and Ratan said, "Pull the trigger or move the gun away, the head is not going to move". Tata Motors also had been under pressure for the much over-hyped JLR Deal which cause potential concerns among the investors.

Tata Motors raised funds by providing 3 yrs short term fixed deposits to pay back the debts. Motors didn't stop at Singur, they've moved a long way since then. The spectacular run we saw on the Tata Motors stock in the last 2-3 months or so back from those 150 odd levels to 570 was not lead only by the "Nano". I feel the company saw its revival from the "ACE". Where the rest of the Mahindras and the Tempos and the Forces tried to capture the small-truck market, they couldn't compete with the ACE for the sole reason that ACE being a four-wheeler was a vehicle with balance, which could be loaded with tons. ACE was rightly termed "Aapka pyaara sa chota haathi" (your dear elephant cub). Since the launch of the Ace, it has captured a lot in that segment.

Tata Motors has undergone such a cyclical revivals every 10 years or so and evertime it has sprung back stronger. It will take a little more time for the company to get back to its full scale but I'm sure it'll.

A lesson for the investors, buy TELCO in dips. Whoever caught it at 150-200 levels, latch on to it. I myself regretted on selling it at around 480. :-)