Nearly two years of underperformance, and the company, Tata Motors, is now among the best performing large-cap stocks in the domestic market. The company was really busy for the past few months and this is a reason why Tata, India's largest automaker, is now in a very comfortable position. The company stock went considerably down during November, 2008, but compared to the period, the stock is now up more than four times. Another 20% rise, and the company will reach the all time high of around Rs 35,000 crore, which the company reached during the late 2006.
Tata has a strong base not only in the commercial vehicle manufacturing sector but also in the passenger car segment. And during a period of two years Tata has achieved great things in the passenger car segment, not only in the domestic market but also in the global market.
The company in India has entered a joint venture with Fiat for both manufacturing and distribution. And the most important happening is the launch of Tata Nano, a dream project of Tata. Nano is the cheapest car in the world and is meant for the common man. After the successful launch of Nano in India, the company is already getting ready to launch it in other European and American countries. All of this has constituted the rise of Tata stock but the JLR, which Tata bought from Ford Motors, is not showing any signs of good business and this is certainly working against the company and the financial cost related to the acquisition of troubled JLR is weighing hugely on the company.
But except for the troubles from JLR, all seems to be well with Tata.