TATA MOTORS VS. TATA MOTORS DVR

TATA MOTORS VS. TATA MOTORS DVR

	TATA MOTORS	TATA MOTORS DVR
Price	Rs 256.75	Rs 156.1
Voting Rights	1 per share	1/10 per share
Dividend	As declared in AGM	5% in addition to regular shares
Face Value	Rs 2	Rs 2

Logic to buy TATA Motors DVR instead of TATA Motor shares:

• Both shares enjoy same level of share in the national and international growth of the company equally.
• Higher dividend and lower investment price means higher dividend yield.
• Differential voting rights does not make sense for retail investors as any case their opinion does not matter to anyone.
• Globally, DVR quote 10-20% discount to the main stock wherein we can easily see this difference to be 39% in case of TATA Motors. Even taking in to account higher 20% as discount rate, it given enough room for 25% appreciation in the stock.
• If one is convinced about the long term story of Tata Motors simply go and buy Tata Motors DVR. Sooner or later stocks will follow international tread of valuations

Disclosure: The author or his immediate family members do not own any shares in either of Tata Motors or Tata Motors DVR.