Aside from the preliminary information, Tata Motors has made moves to start selling in China. China, along with India, doesn’t have a lot of cars on the road at the moment, allowing Tata to tap into the two largest markets for vehicles in the world. Vehicle sales were up 28% for the quarter. Tata’s Q3 net profits were up 12% as well.
Like all Indian stocks, this stock isn’t being bought by the major financial institutions. Why you might ask? A lot of institutional investors don’t want to take the risk, and invest in ETFs instead. Thus, they ignore the tendency to buy up these off shore stocks because of “risk.” It makes me angry that US investors don’t do this because they could make so much money.
Keep in mind when I recommend these stocks, especially international stocks, I would tell you to hold off on buying. Tata is near its high, so watch it over the next couple of days, and buy when it hits a small bump. However I assure you it will grow gradually over the course of 2007.