Atrump Games

Atrump Games
Atrump Games

Exit Tata Motors

Tata Motors came out with very bad number on all fronts. Company is struggling on domestic heavy vehicle segment and losing market share. In order to push their product, company incurred cost is high which resulted in heavy domestic loss. Company jewel Jaguar and Land Rovers showed higher volume and growth but unfavourable mix of product and huge hedge losses resulted in lower profit. Based on the conference call with analyst, company clarified that it may take 2 to 4 quarter to come out of hedge loss issue.

Another hanging threat is US President warning to foreign car players to set up factories in high cost USA geography to access US market or he will impose 35% tax on imported cars. Unfortunately Tata Motors Jaguar and Land Rovers factories are in China, India and Europe. Post result Tata Motors shares are already down by 14% and it is expected that it will correct another 25% in next 3 weeks before it start forming it's lower bottom.

It is advisable that investor should get out the Tata Motors and wait for lower levels to re enter on long term basis. It is also expected that Tata Motors will be very volatile in F&O market and retail investor must refrain from entering into F&O segment. Watch out for 300 to 320 level before returning back.
Disclaimer: Please consult your financial advisor before investing or existing
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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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