Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Indian automaker Tata Motors (NYSE: TTM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Tata's business and see what CAPS investors are saying about the stock right now.
Tata facts
| Headquarters (Founded) |
Mumbai, India (1945) |
| Market Cap |
$19.34 billion |
| Industry |
Auto manufacturers |
| Trailing-12-Month Revenue |
$23.4 billion |
| Management |
CEO Carl-Peter Forster (April 2010)
CFO C. Ramakrishnan (since September 2007)
|
| Compound Annual Revenue and Net Income Growth (Over Past 3 Years) |
48.5% and 45.1% |
| Cash/Debt |
$1.96 billion / $8.05 billion |
| Dividend Yield |
0.9% |
| Competitors |
Toyota Motor (NYSE: TM )
Ford Motor (NYSE: F )
Honda Motor (NYSE: HMC )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 2,652 members who have rated Tata believe the stock will outperform the S&P 500 going forward. These bulls include donsguesswork and All-Star gembuyer.
Late last week, donsguesswork tapped Tata as a big opportunity: "Largest auto maker in India, with premium brand Jaguar Land Rover, is the world's second largest Bus maker and fourth largest truck maker. Tata is trading at forward price to earnings of 10 and PEG of .30. Tata is a great growth story on the cheap."
Tata's scale advantages, revolutionary models like the Nano, and tasty growth prospects continue to support its four-star CAPS status. While global auto gorillas Toyota, Ford, Honda, and General Motors (NYSE: GM ) have all done well to increase their Indian presence over the years, our community thinks Tata remains in the best position to capitalize on the country's attractively low car penetration rate.
CAPS All-Star gembuyer elaborates on the opportunity:
Now profitable and growing domestic sales over 15% a year. Positioned for international market through the infrastructure of Land Rover and Jaguar purchased from Ford. These brands are now profitable too. I'm looking for growth of top line of about 40% and bottom line of 20%.
What do you think about Tata, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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