Which way does market go with Cyrus P. Mistry ??

Successor to Mr. Ratan Tata, the Chairperson of Tata Group, has been announced on November 23, 2011 – Cyrus P. Mistry. He is graduated from the Imperial College, London with a BE in civil engineering and holds a master of science in management from the London Business School.

Low Profile Person

Cyrus operates with low profile. Until the time when his name announced as successor to Mr. Ratan Tata, there was no Wikipedia page for him. But as soon as the news for his appointment came out, a page was created, and in just 2 hours there were more than 35 additions from users.

Cyrus Kingdom

Cyrus Mistry will be the 6th chairman of the Tata Group, founded by Jamsedji Nusserwanji Tata in 1868. The group now comprises more than 100 companies in businesses such as steel, automobiles, telecommunications, beverages and information technology. The group operating in more than 80 countries and had a total revenue of $83.3 billion in 2010-11. Some 58 percent of revenues came from business outside India. Prominent companies in the group include British luxury car marques Jaguar and Land Rover, European steel giant Corus and Tata Consultancy Services, which is India's leading software exporter.

It also owns the Indian Hotels Company, which operates the Taj chain, including the Taj Mahal Palace and Tower in Mumbai.

Stock Buying Strategy

Cyrus Mistry is known for his strong operational and financial experience. His expertise includes formation of business plans, risk evaluation, business investment strategy and property and infrastructure development. Hence we can accept to see the fluctuation trends in Tata Group Stocks. The best strategy in this scenario is to buy on low and sell on high. Holding could be less profitable.

The Cyrus Choice..

Ratan Tata is known to love cars, and hence Tata Motors shares have been among the best choices for the share market investors. Similarly it is assumed that if a person is interested in something, the area is likely to get his more attention. Note that the below assumptions are personal thoughts only

1. Mistry is also said to love cars, especially SUVs. Hence, we may see TATA Motors to add more value.
   
   TATA Motors: Closed @ 168.5 (Nov 23, 2011)
   
   
2. Mistry is also on the board of TATA Elxsi, hence he is been a part of all the decisions in the organization. This is again one of the areas under watch during the coming years.
   
   TATA Elxsi: @ 187.1 (Nov 23, 2011)
   
   
3. According to the people who know Mistry, they said he is a foodie and his favourite holiday destination is Europe. Stocks to be watched under this category
   Indian Hotels Company: @ 57.8 (Nov 23, 2011)
   Taj Groups: @ 76.8 (Nov 23, 2011)
   Tata Chemicals: @ 329.0 (Nov 23, 2011)
   Tata Coffee: @ 774.05 (Nov 23, 2011)
4. According to H P Ranina, who spoke to The Wall Street Journal, Mistry’s key target will be to turn around the group’s international steel business and consolidate all the other businesses.
   TATA Steel: @ 352.5 (Nov 23, 2011)
5. Above all, he holds a degree in Civil Engineering, and he does belong to the family of construction tycoon Mr. Pallonji Mistry.
   Thus Stocks to be watched
   Tata Construction and Projects Ltd.: NA
   Tata Hydro-Electric Power Supply Company Ltd.: NA

Others than the above mentioned points, Mr. Cyrus is an avid golfer and a trustee of the Breach Candy Hospital Trust as well.

“A young leader means long-term stability for the Tata group” A M Naik, CMD, L&T. So we have to wait and watch how does Cyrus take from here. During Ratan Tata's tenure, the group's revenues have grown nearly 12-fold from $5.8 billion in FY92 to $83.3 billion in FY11. Now its Cyurs Mistry on the driving seat.

Our first landmark is December-2011, when Mr. Cyprus official take over the Tata Groups.

(Pic Source : Hindustan Times)