Tata Motors Cheapest Export-based Bet in Sensex Stocks
December 14, 2013 2:45 PM EST
Tata Motors (TAMO.NS) emerges as the cheapest export-oriented stock based on 12-month forward earnings among 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 (SESA.NS), 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.
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- National Ice Cream Day: Most-Ordered Flavors and Toppings by Americans [See Photos]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Photos from the Crash Site of Malaysia Airlines MH17 In Ukraine
Join the Conversation
- Malaysian Airlines Flight 17: Air Carrier to Give $5,000 Assistance to Victims’ Families; Bankruptcy Looms as 2 Air Mishaps Would Cost Firm Minimum $80.55 M Compensation
- Foxconn And Pegatron Corp Readies For Apple's iPhone 6 Mass Production This Month
- KFC & McDonald’s Accused of Serving ‘Expired’ Meat to Customers
- Malaysian Airlines Ukraine Tragedy Hits Asian Stock Markets
- New Zealand's Largest Snack Food Company Bought for NZ$700 Million
- Fresh Leak Hints iPhone 6 Price and Release Date; 4.7-Inches iPhone 6 Sapphire Display Scratched in Test; New Spigen Cases Out
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- End of Times Indicators: Japan’s Mount Fuji in ‘Critical State’ to Erupt, Could Affect At Least 1.2M People