Tata Motors Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
7%
5 Years:
8%
3 Years:
21%
TTM:
18%
Compounded Profit Growth
10 Years:
8%
5 Years:
93%
3 Years:
128%
TTM:
205%
Stock Price CAGR
10 Years:
6%
5 Years:
51%
3 Years:
40%
1 Year:
50%
Return on Equity
10 Years:
9%
5 Years:
6%
3 Years:
15%
Last Year:
49%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
638
644
644
679
679
679
679
720
766
766
766
766
Reserves
36,999
64,960
55,618
78,273
57,383
94,749
59,500
61,491
54,481
43,795
44,556
84,152
Borrowings
53,716
60,642
73,610
69,360
78,604
88,950
106,175
124,788
142,131
146,449
134,113
107,262
Other Liabilities
76,977
92,180
107,442
114,872
135,914
142,813
139,349
133,181
144,193
138,051
155,239
177,340
Total Liabilities
168,330
218,426
237,315
263,184
272,580
327,192
305,703
320,179
341,570
329,061
334,674
369,521
Fixed Assets
55,512
69,092
88,479
107,232
95,944
121,414
111,234
127,107
138,708
138,855
132,080
121,285
CWIP
18,454
33,263
28,640
25,919
33,699
40,034
31,884
35,622
20,964
10,251
14,274
35,698
Investments
8,765
10,687
15,337
23,767
20,338
20,813
15,771
16,308
24,620
29,380
26,379
22,971
Other Assets
85,600
105,385
104,858
106,266
122,600
144,932
146,814
141,141
157,278
150,575
161,941
189,566
Total Assets
168,330
218,426
237,315
263,184
272,580
327,192
305,703
320,179
341,570
329,061
334,674
369,521
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
22,163
36,151
35,531
37,900
30,199
23,857
18,891
26,633
29,001
14,283
35,388
67,915
Cash from Investing Activity
-22,969
-27,991
-36,232
-36,694
-39,571
-25,139
-20,878
-33,115
-25,672
-4,444
-15,417
-22,782
Cash from Financing Activity
-1,692
-3,883
5,201
-3,795
6,205
2,012
8,830
3,390
9,904
-3,380
-26,243
-37,006
Net Cash Flow
-2,499
4,277
4,500
-2,589
-3,167
730
6,843
-3,092
13,232
6,459
-6,272
8,128
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
22.00
-29.00
-26.00
-34.00
-31.00
-49.00
-57.00
-82.00
-107.00
-110.00
-122.00
-103.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Tata Motors Ltd as of October 5, 2024 is: ₹1,276.37
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 5, 2024, Tata Motors Ltd is Undervalued by 37.10% compared to the current share price ₹931.00
Intrinsic Value of Tata Motors Ltd as of October 5, 2024 is: ₹3,196.23
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Tata Motors Ltd is Undervalued by 243.31% compared to the current share price ₹931.00
Last 5 Year EPS CAGR: 150.42%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -44.83, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -49.50, which is a positive sign.
The company has shown consistent growth in sales (272.15 cr) and profit (5.08 cr) over the years.
The stock has a low average ROCE of 11.00%, which may not be favorable.
The company has higher borrowings (98,816.67) compared to reserves (61,329.75), which may suggest financial risk.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Motors Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 36.97% (Industry Average ROE: 30.29%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 10.1 (Industry average Stock P/E: 48.76)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 1.16
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Tata Motors Ltd. is a Public Limited Listed company incorporated on 01/09/1945 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28920MH1945PLC004520 and registration number is 004520. Currently Company is involved in the business activities of Sale of motor vehicles. Company’s Total Operating Revenue is Rs. 47263.68 Cr. and Equity Capital is Rs. 765.88 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Motors Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
Manage Consent
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.