The previous post has received some serious attention from friends. I must say that all their observations are valid. My attempt was just to raise a voice and debate about this sector and relative valuations. I have not done anything beyond a cursory analysis.
Some interesting points to be considered are:
- M&M consolidated includes a large finance subsidiary- So leverage and cash flow numbers could tell a different story. A stand alone M&M would perhaps emerge stronger;
- Tata Motors- Capitalisation of project costs, development costs etc would impact free cash flow;
- A cash flow analysis would perhaps tell a different story.
- ROEs can change, based on accounting policies.
However, I am not so sure that the broad indicators will be way off. Hopefully, I will follow this up with a detailed analysis of the full numbers .
In the meanwhile, please keep the comments flowing.
Many thanks
Bala
BalaBlogs 
Odd after your comments AL seems to have started a bull run.First time breaks 100 🙂
LikeLike
TATA MOTOR DVR is at around 30% discount to TATA MOTOR.
Is there anything you loose except voting right (mostly small investors are irrelevant when it comes to voting). how is this big gap in valuation so ? Are investors missing something ?
Voting : You have to go though x site with y password and z is the timeline only when you are allowed to vote, who has the time to do all this nonsense.
LikeLike