What it does: Tata (TTM) is an Indian automaker producing cars and trucks for both commercial and personal use. Although it's gotten its fair share of publicity globally for its $2,000 Nano compact car, it is less widely known as the company that now makes luxury brands Jaguar and Land Rover.
Why it's a bargain: India is still growing at a much faster rate than the U.S., but forecasts see that growth rate slowing this year. And while it dominates the low-priced car market in India, Tata has seen margins at Jaguar Land Rover fall sharply. Nevertheless, the share price already reflects much of this expected slowdown, and with the stock fetching just seven times what it has earned in the past 12 months, Tata has great long-term potential once India gets back into faster-growth mode.