Tata Motors is doing well in both its Indian and overseas operations. Medium and heavy commercial vehicle (MHCV) which is the mainstay of domestic operations is on a strong turf due to robust economic growth. Despite cost pressures, truck operator's profitability remain strong due to increase in freight rates and easy availability of freight. LCV segment continues in secular growth trend due to requirement of last mile connectivity.

Overseas operations have seen a strong rebound with improvement in both volumes and profitability for Jaguar LandRover. The company is working further on cost cutting for sustaining the profitability of JLR operations.

Over the last 18 months, Tata Motors has worked on reducing leverage on its balance sheet. This has led to a significant improvement in debt equity ratio to less than 2 as against 5 in FY09.

The stock has corrected by ~14% from its recent highs and presents a very attractive entry point.