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Stocks to buy now - TATA MOTORS

Welcome guys to amazing adviser. Today I am  going to share an investment idea for long term wealth creation. This is totally on my research.

So today's stock is TATA MOTORS. The main reason for choosing this stock is its price. It is trading in its 52 week's low which is around ₹243.10 and its current price is around ₹260. You can clearly see it in it's weekly chart.
Around ₹240 it has major support from last five years. So in my opinion it's the perfect time to buy this stock for long term wealth creation. This was the technical reason for buying this stock. Except this I can also tell few fundamental stories to buy this stock.

First, the brand name of TATA. Personally I have always admired Shri Ratan Tata. He is a gem and a true example of how a leader should be. And I don't think TATA MOTORS will shut down in next decade or few decades.

Secondly it's market capital is around ₹75000 Cr. and that's not a small amount. Thirdly company is showing promise in its portfolio and continuously launching new products. I had read its 73rd Annual Report and found that in FY 2017-18 it has launched 50+ commercial vehicles, 2 passenger vehicle and 9 vehicles in JLR segment. It is also expending significant amount in research and development that's showing that it is preparing itself for future.

Lastly the most important thing to check is sustainability of it's business model. According to my guru Warren Buffet "You should understand the business in which you want to invest." We all know TATA MOTORS is the largest commercial vehicle manufacturer in India. I mean whenever I go outside I see 98% of commercial vehicle of TATA MOTORS. So this is a very simple model for a retail investors.

Some experts are showing concern about the future growth potential of this company. They are saying that future will be of electrical vehicles. I totally agree on that but wait a minute. Do you think TATA MOTORS management don't know about this fact. I mean, they are more intelligent, more experienced and they have more resources, more knowledge of auto industry than anybody else. So don't think that they will sit in silent and company's growth will go down.

I am very passionate towards luxury car, never know if I'll ever own them but yes, I'm sure that whenever I'll buy I'll make sure I'll buy Jaguar. Why? Because it's owned by my country's company. I am proud for that. Just because TATA MOTORS posted weak results in JLR segment doesn't mean everything is wrong.

LIC owns 4.4% stake in TATA MOTORS and continue to hold throughout the year and remained top shareholder of this company.

In the end I'll not say go and buy just because I am recommending. One thing which I learnt from my small experience in share market is "Listen to all but do what you feel right." In my opinion it's a good time to buy this share for long term. If you buy then make sure don't buy in single chunk. Whatever you want to invest should not cross 5% of your total portfolio.


You even can accumulate around ₹200 level which is next support for this stock if its goes down which is worst case scenario. I hope you'll find this helpful.

Thank you
Happy Investing.

Ashish Kumar Dash

Disclosure- I personally have this share in my portfolio.
 

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