Tata Motors cheapest export-based bet in Sensex stocks

Tata Motors emerges as the cheapest export-oriented stock based on 12-month forward earnings among

RELATED ARTICLES

Sensex constituents, analysts say, mainly due to increasing contribution in revenues and profits from its unit Jaguar Land Rover Ltd (JLR).

Tata Motors is also the second least expensive stock in the benchmark index, based on 12-month forward earnings, after new entrant Sesa Sterlite, despite outperforming Sensex by a wide margin in 2013.

Tata Motors rose 15.3 percent in 2013 compared to the BSE index return of 7.72 percent in the same period, as of Thursday's close.

Tata Motors is trading at 8.38 times its 12-month forward earnings, just slightly higher than the 8.24 times for Sesa Sterlite, which is currently the cheapest stock in the Sensex, Thomson Reuters data shows.

However, some point out its better to value Tata Motors on enterprise value/operating profit or sum-of-the-parts method given losses in domestic business, forex fluctuations and tax treatment by the company.

Tata Motors shares were up 2 percent on value buying after falling 8.4 percent over the previous three sessions on worries about higher than expected capex at unit JLR.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The budget is sound in logic; the market is too clever by half

    For a man derided by former finance minister P Chidambaram for his knowledge of economics as only sufficient to be scribbled on the back of a postage

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture