Originally posted by nav_1996 Auto Corp of Goa is destiny linked with Tata Motors and CV sales.

Originally posted by Vivek Sukhani Originally posted by nav_1996 Auto Corp of Goa is destiny linked with Tata Motors and CV sales.   I agree......but with these type of companies you have to purchase them only when everything is looking very very gloomy.   Me and Kannan used to discussed this company and hence i wanted to know how does he think about this company at this point of time, when the price seem to be capturing all downsides.   Problem is, if Tata motors imports those vestibule buses and Marcopolo buses then surely the business will be affected. But given the state of public transportation in our country, this space has a bright future although the immediate future may be a bit gloomy.

The pricing for ACGL is clearly gloomy. They are priced at less than their net current assets + investments. My concern is same - Tata is engaging in partnerships with Marcopolo and there is no clarity around how that partnership will affect ACGL. I haven't seen any statements around that from ACGL management. If the Marcopolo link wasn't there, Acgl was clearly in a leadership spot in a growing and essential niche market. I wish the ACGL management comes out with some plan as to where their focus area would be compared to Tata-Marcopolo joint venture.

reg auto corp goa if i remember reading local ns paper correctly working hrs have been reduced to2-3days if trucks and buses r not selling how can this business gen cash

http://www.motorindiaonline.com/2009/04/tata-motors-targets-major-share-of.html

Finally, some clarity on how business would be divided between ACGL and Tata Marocpolo. It seems ACGL will concentrate on building ultra luxury buses. These I presume would directly compete with Volvo buses in the private operator segment. Also most of ACGL production is slated for export. Tata-Maro on the other hand would concentrate on low-floor buses which would typically be bought by govt agencies for city transport. ACGL does seem to be focused on a good segment - high margin ultra luxury segment, but I wish they had the full portfolio of luxury and low-floor city buses...oh well.