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
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Google Release Roundup: Nexus 5 2014, Nexus 6, Nexus 8 and Android L Killer Features
- Samsung Attacks iPhone 6 Plus Through New Galaxy Note 4 Commercial: Apple Claims Imitating Galaxy Note Phablets
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- iPhone 6 And IPhone 6 Plus Sold Out, New Stocks To Arrive In October
- Moto G (Gen 2) vs. Xiaomi Redmi 1S—Specifications, Features And Price Showdown
- Nexus 6, 8 Release Dates Imminent as Moto X Pre-Order Begins & Nexus 7 Deals Ramp Up
- iPhone 6 And iPhone 6 Plus Shipping Has Begun, Expected To Reach Customers’ Doorstep On Sept 19 Launch Date