Posts Tagged Tata
Tata Nano suppliers’ performance in the stock markets
Last year (Jan 16th, 2008) I had predicted a good show in the stock markets for the Tata Nano part suppliers, over a 1-2 year horizon. I checked up on these stocks and I was surprised, mostly negative, with the results. Taken as a basket of stocks, the group fell 28% as compared to the Sensex’s fall of 18% as on 23rd October 2009.
Exide Industries (+30%)
Lumax Industries (-51.59%)
Sona Group (-46.3%)
Rico Auto (-42.43%)
Sekurit Saint-Gobain (-49.52%)
MICO Bosch (-9.58%)
One of the reasons is definitely the delayed release of the Nano. The first Nano was handed to a customer on July 17th, 2009, almost a year later than the once-officially announced availability. So it does warrant another year’s time before one thinks of selling off these stocks. Remember CRISIL did report that the Nano has the potential of increasing the Indian car market by 65%. And how did Tata Motors perform at the stocks? Compared to Jan 16 2008, a fall of 24.41%. Obviously hurt by the Singur plant delay and shut-down, the delayed release, increasing raw material costs and the recession.
By the way, the only stock I invested in back then was Exide Industries 
, never mind how many. An increase of 30% while all the other stocks including the Sensex are in negative! Exide industries will continue to do well(it doubled net profits this quarter!). The others should climb once the Nano catches up and the various versions come out.
Tata Nano – part suppliers
Posted by Sreelesh in Technology on January 16, 2008
Happy New Year Everybody!
Lots of interesting developments in the very beginning of 2008 – the cheapest car in the world, the first probable black US president/first lady US president, biggest ever Indian IPO – RPL, ‘racism’ incidents in sports.. Suddenly News channels* are the most viewed channels at home. Personally, I want this new year to make me some good money. Praying myself a Happy & very Prosperous New Year
This post is one for the stock market freaks. 2008 is certainly going to be a very happening year for the Indian automobile industry: Over 30 new models (highest ever in India) to be launched by various players, Tata Nano at 1 lac rupees($2,500), Tata buying jaguar & Land Rover (India ki Jai!), many foreign luxury brands getting in, Bajaj’s entry…
So who stands to gain apart from us consumers? Check these guys out. Already main suppliers to the Nano, they are sure to play a big role as more vehicles are rolled out the next few years.
Lumax Industries – lighting
Sona Group – Sona Koyo Steering Systems
Rico Auto Industries – Engine housing
SEKURIT Saint-Gobain India – glass (formerly Maharashtra Glass and Agro)
Motor Industries Company (MICO) – design
Exide Industries – battery
Since the Nano’s expected to be out in the latter half of 2008, keep these company stocks in mind over a 1-2 year investment horizon. They’re sure to be winners. I hear over 100 local suppliers for the Nano – need to get that good list somehow!
*very unrelated: Smriti Rao of NDTV has captured my mornings , one very sweet and pretty newsreader!
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