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November 19, 2010
Edited: November 20, 2010
Share ThisThe first stock in this list is our top pick for an Indian stock.
We want one that is easy to follow and has a chance to hit 100 at some point in the next 2-4 years.
The stock is Tata Motors (TTM).
Current price: 31
Tata Motors is India's largest auto maker.
It is the world's fourth largest truck maker and second largest bus maker.
TTM has begun to branch overseas. It's grobal auto sales are up 29%.
TTM is a strong play on the ever-growing spending power of Indian consumers as the economy in the country continues its rapid growth.
It is ranked a #1 stock by Zacks due to it's recent quarterly report.
India stock market is in Bull mode and India is a large growth mode.
The stock has doubled since last May but is still cheap from a valuation standpoint. (see Zack's post "More than a double since May, Tata Motors still looks cheap".
TTM is up 91% this year.
India auto sales are hopping. October sales up 38% from a year ago.
TTM purchased lines from Ford (F), the Jaguar and Land Rover, have turned around and made a profit of $384 million.
As growth in India has surged, auto sales have surged to record levels
TTM has been the lone growth stock in the auto industry the last three years.
TTM also carries the world's cheapest auto, the Nano. It's energy-efficient autos are becoming more popular all over the world. The Nano sells in India for US dollars $2500. The company earlier this year announced plans to introduce an US version.
TTM also working on a proposed electric car around $8-10,000. It was unveiled eariler this year. A poll taken by "The Street" earlier this year showed that 81% chose the TTM car over other electric car options.
TTM stock is down today (Nov 19). We recommend buying on a dip. Our first stock in the diversified portfolio is a Indian stock which can be easily followed and which we expect to hit 100 in 2-4 years.
