Wednesday, October 15, 2008

Tata Motors slips after overseas acquisition

Tata Motors slipped 0.30% to Rs 298 at 9:55 IST on BSE, even as the company said its UK unit has acquired 50.3% stake in Norway-based Miljo Grenland/Innovasjon, which specialises in developing solutions for electric vehicles.
The stock hit a high of Rs 298 and a low of Rs 295 so far during the day. The stock has a 52-week high of Rs 810.04 on 29 October 2007 and a 52-week low of Rs 270 on 10 October 2008.
The company’s current equity is Rs 514.29 crore. Face value per share is Rs 10.
The current price of Rs 298 discounts the company’s Q1 June 2008 annualized EPS of Rs 33.82, by a PE multiple of 8.11.
Tata Motors and Miljo will together launch electric vehicle Indica EV in Europe in 2009.
It may be recalled that Tata Motors recently decided to relocate its small car Nano plant to Gujarat from West Bengal due to controversy over acquisition of farm land for the plant in West Bengal.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.

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