It is always good to have a diverse portfolio but many of us do not prioritize an automobile stock to be a part of it. In this article, the venture guide will tell you why you should have Tata Motors in your portfolio. Tata Motors is a multinational company that produces passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment, and military vehicles.
Tata has grown like anything in these years. From Rs 32 per share in 2009 to Rs 320 in 2021, it has grown investors money by 10 times. Imagine putting the same amount of money in Tata shares rather buying a Tata car, they both are opposites. Obviously the latter becomes an asset for your life. Apart from its rising share price, Here is why you should have Tata Motors in your portfolio:
1. Consistent Product Improvement: In 1998, the very first India’s own car was launched by Tata Motors & was called Indica. It was so spacious that even today’s hatchbacks fail to provide that space. Tata struggled to generate footfall for their products as the Indian consumer trusted foreign brands rather than their own country’s brand. Tata thrived and managed to sell sufficient cars to be in the market. Innovation continued for Tata as it launched a car for just 1 lakh rs and named it Tata Nano in 2009. It came with the idea of fulfilling everyone’s dream of having a car. Not only this, if we talk about today’s scenario, Tata is very much ahead of technology and has launched EVs to save cost and environment.
2. Great Revenue Through Subsidiaries: It is really hard to count Tata Motors subsidiaries but Jaguar and Land Rover are the most revenue-generating. The latest news that took Tata Motors to the top gainers category was the Q4 sales results of Jaguar and Land Rover. News like this can really impact and can help us on How To Pick Best Indian Stocks Yourself In Just 1 Minute? Global wholesales for Jaguar Land Rover were at 1,36,461 units in the January-March quarter of 2020-21. Tata Motors has been generating the highest revenues through these 2 subsidiaries.
3. The Future Of Electric Vehicles: Tata introduced the concept of electric vehicles way back in 2018 in India. Indian startup BluSmart ordered plenty of Tata Tigor EV models (the cheap EV sedan). Recently Delhi government planned to make the city pollution-free and gave subsidies on electric vehicles. The government also planned to deploy electric vehicles replacing petrol & diesel cabs. The future of electric vehicles is very bright and Tata has all the plans to expand and shake hands with the future.
All Green In The Financial Charts: Tata Motors has done financial really well in the past few years and has made its market value. Its YoY revenue rose by 5.55% and net income rose by 67.22%. The net profit margin also grew by 58.02%. The operating income also showed strong green signs with an increase of 169.41%. All these figures make Tata motors, a financial well doing company, giving all possible signs to buy the stock.
The Venture Guide researches a lot on the market trends and appreciates the viewpoint of the investors. Investing in Tata companies can really give strong returns in future.