Stock Review: Tata Motors

 

Tata Motors has benefited from a sharp revival in key European operations since the March 10 quarter. This is largely due to a pick-up in demand for these luxury brands in fast-growing emerging markets, including China and Russia. Apart from that, cost-cutting measures implemented at its European facilities have shown signs of paying off. Its overseas operations constitute nearly 62% of its consolidated turnover in the first nine months of FY11. Tata Motors trades at a P/E of 8.9 times on a consolidated basis on a trailing 4-quarter basis and appears attractively valued.