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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500570 | NSE: TATAMOTORS

Fundamental Analysis of Tata Motors Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:34 pm

Market Cap 3,64,190 Cr.
Current Price 993
High / Low1,066/557
Stock P/E11.3
Book Value 255
Dividend Yield0.30 %
ROCE20.1 %
ROE49.4 %
Face Value 2.00
PEG Ratio0.08

Competitors of Tata Motors Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ashok Leyland Ltd 70,427 Cr. 240243/15827.8 30.72.06 %15.2 %28.8 % 1.00
SML ISUZU Ltd 3,055 Cr. 2,1112,480/99028.3 1970.00 %23.8 %46.6 % 10.0
Atul Auto Ltd 1,535 Cr. 553693/325217 1510.00 %4.24 %1.84 % 5.00
Olectra Greentech Ltd 14,423 Cr. 1,7572,222/907188 1110.02 %14.8 %8.76 % 4.00
Industry Average22,360.00 Cr1,165.25115.28122.430.52%14.51%21.50%5.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales75,65488,62866,40661,37972,22978,43971,93579,61188,489105,932102,236105,128110,577
Expenses63,52175,25461,16457,26265,15170,15669,52274,03977,66892,81889,01891,36195,159
Operating Profit12,13313,3745,2434,1177,0788,2832,4135,57210,82013,11413,21813,76715,418
OPM %16%15%8%7%10%11%3%7%12%12%13%13%14%
Other Income289-12,6555848627891892,3811,3511,1301,3626841,5071,410
Interest2,1262,1452,2032,3272,4012,3812,4212,4872,6762,6422,6152,6522,485
Depreciation6,1296,2176,2026,1236,0786,4325,8415,8976,0727,0506,6336,6366,850
Profit before tax4,167-7,643-2,579-3,472-612-341-3,468-1,4613,2034,7844,6535,9867,494
Tax %23%2%-68%-29%-119%-222%-44%31%8%-13%34%37%7%
Net Profit2,941-7,585-4,450-4,416-1,451-992-4,951-8983,0435,4963,3013,8327,145
EPS in Rs9.41-22.91-13.41-13.38-4.57-3.11-15.08-2.848.9116.289.6411.3321.14

Last Updated: June 13, 2024, 9:06 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 2, 2024, 12:18 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales165,654188,793232,834263,159273,046269,693291,550301,938261,068249,795278,454345,967423,874
Expenses143,439164,197197,980223,920234,650240,104260,093277,274243,081217,507253,734314,151368,356
Operating Profit22,21524,59634,85339,23938,39529,58931,45824,66417,98732,28724,72031,81655,517
OPM %13%13%15%15%14%11%11%8%7%13%9%9%13%
Other Income-74213-157714-2,6701,8695,933-26,686102-11,1182,4246,3284,963
Interest2,9823,5604,7494,8614,8894,2384,6825,7597,2438,0979,31210,22510,394
Depreciation5,6257,60111,07813,38916,71117,90521,55423,59121,42523,54724,83624,86027,170
Profit before tax13,53413,64718,86921,70314,1269,31511,155-31,371-10,580-10,474-7,0033,05822,917
Tax %-0%28%25%35%21%35%39%8%-4%-24%-60%23%
Net Profit13,5999,97614,05014,07311,6787,5579,091-28,724-11,975-13,395-11,3092,69019,774
EPS in Rs47.6034.6248.4648.4440.1125.8231.13-99.84-39.08-40.51-34.467.2758.39
Dividend Payout %9%6%5%0%1%0%0%0%0%0%0%32%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-26.64%40.84%0.16%-17.02%-35.29%20.30%-415.96%58.31%-11.86%15.57%123.79%
Change in YoY Net Profit Growth (%)0.00%67.48%-40.67%-17.18%-18.27%55.59%-436.26%474.27%-70.17%27.43%108.21%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:8%
3 Years:21%
TTM:27%
Compounded Profit Growth
10 Years:8%
5 Years:93%
3 Years:128%
TTM:1266%
Stock Price CAGR
10 Years:8%
5 Years:42%
3 Years:41%
1 Year:68%
Return on Equity
10 Years:9%
5 Years:6%
3 Years:15%
Last Year:49%

Last Updated: June 18, 2024, 10:13 am

Tata Motors Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital635638644644679679679679720766766766766
Reserves32,06436,99964,96055,61878,27357,38394,74959,50061,49154,48143,79544,55652,877
Borrowings47,14953,71660,64273,61069,36078,60488,950106,175124,788142,131146,449134,113127,864
Other Liabilities62,91976,97792,180107,442114,872135,914142,813139,349133,181144,193138,051155,239165,495
Total Liabilities142,766168,330218,426237,315263,184272,580327,192305,703320,179341,570329,061334,674347,002
Fixed Assets44,36055,51269,09288,479107,23295,944121,414111,234127,107138,708138,855132,080140,145
CWIP15,94618,45433,26328,64025,91933,69940,03431,88435,62220,96410,25114,2749,091
Investments8,9188,76510,68715,33723,76720,33820,81315,77116,30824,62029,38026,37925,776
Other Assets73,54285,600105,385104,858106,266122,600144,932146,814141,141157,278150,575161,941171,990
Total Assets142,766168,330218,426237,315263,184272,580327,192305,703320,179341,570329,061334,674347,002

Reserves and Borrowings Chart

Tata Motors Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 18,38422,16336,15135,53137,90030,19923,85718,89126,63329,00114,28335,388
Cash from Investing Activity -19,464-22,969-27,991-36,232-36,694-39,571-25,139-20,878-33,115-25,672-4,444-15,417
Cash from Financing Activity 6,567-1,692-3,8835,201-3,7956,2052,0128,8303,3909,904-3,380-26,243
Net Cash Flow5,488-2,4994,2774,500-2,589-3,1677306,843-3,09213,2326,459-6,272

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-25.00-29.00-26.00-34.00-31.00-49.00-57.00-82.00-107.00-110.00-122.00-103.00

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.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days211717181925231619161714
Inventory Days646967737783738283716664
Days Payable137146131138138151133145175141128118
Cash Conversion Cycle-51-60-47-46-41-43-38-48-74-53-45-40
Working Capital Days-57-41-44-47-50-50-53-68-48-32-23-11
ROCE %21%22%21%15%9%9%2%-0%6%1%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters46.41%46.41%46.40%46.40%46.40%46.40%46.39%46.39%46.39%46.38%46.37%46.36%
FIIs14.28%13.35%14.57%14.45%13.71%14.13%13.89%15.34%17.72%18.40%18.62%19.20%
DIIs11.47%13.30%13.64%14.38%15.17%14.75%15.21%17.69%17.38%17.37%17.25%16.01%
Government0.15%0.15%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%
Public27.69%26.80%25.24%24.62%24.57%24.58%24.36%20.41%18.38%17.70%17.60%18.31%
No. of Shareholders20,80,87526,95,59032,52,51337,97,10040,08,50639,76,83039,93,04338,14,83135,02,40837,73,31441,84,36946,16,908

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF31,836,6201.743025.1210,471,3402024-06-24204.04%
SBI S&P BSE Sensex ETF22,880,5762.062175.4910,471,3402024-06-24118.51%
Axis Bluechip Fund10,471,3403.05994.9910,471,3402024-06-240%
HDFC Top 100 Fund - Regular Plan9,686,5122.91920.4110,471,3402024-06-24-7.5%
Axis ELSS Tax Saver Fund9,416,0422.63894.7110,471,3402024-06-24-10.08%
UTI Nifty 50 ETF8,873,5121.74843.1610,471,3402024-06-24-15.26%
ICICI Prudential Value Discovery Fund12,968,8322.02819.9510,471,3402024-06-2423.85%
SBI Balanced Advantage Fund8,484,5002.87806.210,471,3402024-06-24-18.97%
HDFC Balanced Advantage Fund - Regular Plan8,451,6811.02803.0810,471,3402024-06-24-19.29%
UTI S&P BSE Sensex ETF7,996,6082.06760.3210,471,3402024-06-24-23.63%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)81.956.29-29.88-36.99-34.88
Diluted EPS (Rs.)81.886.29-29.88-36.99-34.88
Cash EPS (Rs.)152.3271.0535.5227.5029.05
Book Value[Excl.RevalReserv]/Share (Rs.)242.91137.33127.50148.39177.59
Book Value[Incl.RevalReserv]/Share (Rs.)242.91137.33127.50148.39177.59
Revenue From Operations / Share (Rs.)1142.67903.28727.15652.37725.65
PBDIT / Share (Rs.)170.8895.4472.5391.2358.26
PBIT / Share (Rs.)99.7230.537.6729.73-1.29
PBT / Share (Rs.)71.127.98-18.29-27.35-29.41
Net Profit / Share (Rs.)81.176.14-29.34-33.99-30.51
NP After MI And SOA / Share (Rs.)81.936.30-29.88-35.13-33.55
PBDIT Margin (%)14.9510.569.9713.988.02
PBIT Margin (%)8.723.371.054.55-0.17
PBT Margin (%)6.220.88-2.51-4.19-4.05
Net Profit Margin (%)7.100.68-4.03-5.21-4.20
NP After MI And SOA Margin (%)7.160.69-4.10-5.38-4.62
Return on Networth / Equity (%)36.975.32-25.67-24.34-19.13
Return on Capital Employeed (%)19.396.451.636.14-0.25
Return On Assets (%)8.470.71-3.46-3.92-3.74
Long Term Debt / Equity (X)0.731.962.191.691.32
Total Debt / Equity (X)1.162.773.132.081.58
Asset Turnover Ratio (%)1.240.330.230.150.23
Current Ratio (X)0.960.970.970.930.85
Quick Ratio (X)0.690.710.740.700.58
Inventory Turnover Ratio (X)5.632.211.590.901.22
Interest Coverage Ratio (X)6.563.572.984.312.89
Interest Coverage Ratio (Post Tax) (X)4.211.07-0.131.09-0.11
Enterprise Value (Cr.)443984.46257016.64269283.40185136.4692326.40
EV / Net Operating Revenue (X)1.010.740.960.740.35
EV / EBITDA (X)6.787.039.705.304.40
MarketCap / Net Operating Revenue (X)0.860.460.590.460.09
Price / BV (X)4.483.553.732.090.40
Price / Net Operating Revenue (X)0.860.460.590.460.09
EarningsYield0.080.01-0.06-0.11-0.47

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,427.73

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.

Undervalued: 43.78% compared to the current price 993

Intrinsic Value: 3,575.26

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 260.05% compared to the current price ₹993

Last 5 Year EPS CAGR: 150.42%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -43.67, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -48.83, which is a positive sign.
  3. The company has shown consistent growth in sales (272.15 cr) and profit (5.08 cr) over the years.
  1. The stock has a low average ROCE of 9.33%, which may not be favorable.
  2. The company has higher borrowings (96,427.00) compared to reserves (56,672.77), 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:
    1. Net Profit Margin: 7.10%
      • 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.
    2. ROCE: 19.39% (Industry Average ROCE: %)
      • 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.
    3. ROE%: 36.97% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.21
      • 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.
    5. Quick Ratio: 0.69
      • 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.
    6. ✗ Stock P/E: 11.3 (Industry average Stock P/E: )
      • 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.
    7. ✗ 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.
INDUSTRYADDRESSCONTACT
Auto - LCVs/HCVsBombay House, 24, Homi Mody Street, Mumbai Maharashtra 400001inv_rel@tatamotors.com
http://www.tatamotors.com
Management
NamePosition Held
Mr. Ratan N TataChairman Emeritus
Mr. N ChandrasekaranChairman & Non-Exe.Director
Mr. Girish WaghExecutive Director
Mr. Om Prakash BhattInd. Non-Executive Director
Ms. Hanne SorensenInd. Non-Executive Director
Ms. Vedika BhandarkarInd. Non-Executive Director
Mr. Kosaraju V ChowdaryInd. Non-Executive Director
Mr. Al-Noor RamjiInd. Non-Executive Director
Mrs. Usha SangwanInd. Non-Executive Director
Mr. Mitsuhiko YamashitaNon Exe.Non Ind.Director

FAQ

What is the latest fair value of Tata Motors Ltd?

The latest fair value of Tata Motors Ltd is ₹1427.73.

What is the Market Cap of Tata Motors Ltd?

The Market Cap of Tata Motors Ltd is 3,64,190 Cr..

What is the current Stock Price of Tata Motors Ltd as on 23 June 2024?

The current stock price of Tata Motors Ltd as on 23 June 2024 is ₹993.

What is the High / Low of Tata Motors Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tata Motors Ltd stocks is 1,066/557.

What is the Stock P/E of Tata Motors Ltd?

The Stock P/E of Tata Motors Ltd is 11.3.

What is the Book Value of Tata Motors Ltd?

The Book Value of Tata Motors Ltd is 255.

What is the Dividend Yield of Tata Motors Ltd?

The Dividend Yield of Tata Motors Ltd is 0.30 %.

What is the ROCE of Tata Motors Ltd?

The ROCE of Tata Motors Ltd is 20.1 %.

What is the ROE of Tata Motors Ltd?

The ROE of Tata Motors Ltd is 49.4 %.

What is the Face Value of Tata Motors Ltd?

The Face Value of Tata Motors Ltd is 2.00.

About the Author

Author Avatar
Getaka

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