Tata Motors Limited (ADR) (TTM): India Isn’t China, So Bet On India?

The company’s top and bottom lines have been on a largely upward path. An improving world economy would clearly boost results, but even during the recession the company was able to excel. A large part of this success is the company’s strong customer relationships and repeat business. The shares aren’t cheap but do appear a little undervalued at current levels.

Wipro Limited (ADR) (NYSE:WIT)

Wipro is also a global outsourcing player. The company was founded in 1945 as Western India Vegetable Products Limited and entered the information technology industry in 1981. It has over 140,000 employees in 57 countries, and over 900 clients.

One interesting aspect about the company is the diversity of its business. While IT is the clear core, it also has operations in manufacturing, making such things as consumer products, furniture, and computers. While these businesses are slower growing than IT, they provide a solid base for the company that should help smooth out difficult periods.

Wipro is more compellingly priced than Infosys despite similarly strong top and bottom line trends.

Tata Motors Limited (ADR) (NYSE:TTM)

The company is highly leveraged and demand for automobiles is highly dependent on economic conditions. However, it has made a shift from focusing on its domestic market to operating on a global scale. That gives it a leg up on competitors from China, which also have global aspirations.

Tata Motors Limited (ADR) (NYSE:TTM) should benefit from taking the knowledge and skills from its global brands and applying that to its domestic business. This should allow Tata to compete more effectively as the Indian car market expands with an expanding consumer class. It should also allow the company to branch out of its home market with its domestic nameplates.

The shares are probably a little undervalued at recent prices.

India as the also ran

India is the perpetually forgotten country in Asia. Its slow economic progress is good reason for this, but it is the home of truly important global companies. These entities should be able to break free of the local bureaucracy and use the large population in the country to thrive over the long term.

The article India Isn’t China, So Bet On India? originally appeared on Fool.com is written by Reuben Gregg Brewer.

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