Stock analysis :Tatamotors

About Tatamotors:

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 2,32,834 crores (USD 38.9 billion) in 2013-14. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India.  With over 8 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia

Current announcement:

Tata Motors yesterday reported 10.69 per cent increase in total sales at 44,225 units in February, as against 39,951 units in the same month last year.

Domestic sales of Tata commercial and passenger vehicles grew by 14.15 per cent at 40,314 units as compared to 35,315 units in February 2014, Tata Motors said in a BSE filing.

Sales of passenger vehicles in the domestic market in February stood at 13,767 units, up 21.56 per cent from 11,325 units in February 2014.And they said The trend of growth in passenger vehicles continued with the strong Zest sales and good response to the all-new Bolt,

In the commercial vehicles segment, domestic sales were at 26,547 units during the month. Exports during the month stood at 3,911 units, down 15.63 per cent as against 4,636 units in the year-ago month.

The company’s sales of commercial vehicles in February 2015 in the domestic market at 26,547 nos., higher by 11%, over February 2014. LCV sales were at 14,357 nos., a decline of 4% over February 2014, while M&HCV sales continued to show growth at 12,190 nos., higher by 34%.

Exports

The Company’s sales from exports were 3,911 nos., in February 2015, lower by 16% compared to 4,636 vehicles in February 2014. The cumulative sales from exports for the fiscal at 44,498 nos., remained flat, compared to last year. 

 Analysis:

Tatamotors yesterday close was 584.15. Today open was 583.45 and closed at 574.60 Net changes Percentage was -1.63.Today Nifty has reached the 9000 level so there can be sell off in our market due to profit taking by traders. Tatamotors domestic sales grew 14 % for the month of February in 2015 compared to 2014. Please don’t buy stock for short term based up on this growth as all you know main challenge for this company is to post growth in JLR subsidiary JLR which is likely to be disappointing again.

For long term traders please wait till it reach 530 levels to buy this stock. If tomorrow it crosses the 571 level then which indicates down side of this stock .And my first target will be 564.90. Second target is 560.95 for short term.

Tatamotors this month target can be around 530 levels. In 530 levels strong support is there hence we can buy this stock for long term and short term at that level.