Is Tata Motors currently undervalued? Is it good to accumulate for long term?
Yes, Tata Motors is currently undervalued.
Are undervalued stocks really a safe investment bet?
Until every average investor makes money in a stock and are happy to hold the stock without selling it at higher prices then you can call it an worthy investment.
In a so called undervalued stock there are so many investors who have bought the stock at higher price are waiting to get out or book loss on every small rally.
Be it ICICI Bank, Tata Motors, IT stocks and Pharma Stocks. Stocks can spike upto 15–20% just to see it fall the next day.
Always buy performing stocks on dips.
Stocks like Yes Bank, Bajaj Finance, Maruti, Indusind bank, Kotak Mahindra Bank, TVS motors, BPCL, etc are all buys on 5 to 10% dips.
Currently you can add Reliance and L&T to the list. These stocks can double your money in 2–3 years.
Tata motors can move to 550 in a year. Until Tata Motors shows strong Quarterly results and really good domestic launches it is not going to give 15–20% a year.
As per my view stocks hitting 52 week regularly are top performers and multibaggers. Any such stock that dip is an Value pick.
Bajaj Finance was undervalued at 900.
Indusind Bank was undervalued at 1150.
Maruti was undervalued at 5000.
TVS was undervalued at 350.
Please comment your thoughts and also kindly care to share.
Originally written at Quora.com