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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tata Motors Ltd

About the Company - Tata Motors Ltd

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

Tata Motors Ltd. Share Price Update

Share PriceValue
Today₹936.60
Previous Day₹932.10

Basic Stock Data of Tata Motors Ltd

Market Cap 3,42,813 Cr.
Current Price 937
High / Low950/400
Stock P/E17.0
Book Value 161
Dividend Yield0.21 %
ROCE5.95 %
ROE5.62 %
Face Value 2.00

Data Source: screener.in

Tata Motors Ltd Quarterly Results

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

Tata Motors Ltd Quarterly Chart

Tata Motors Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales165,654188,793232,834263,159273,046269,693291,550301,938261,068249,795278,454345,967401,785
Expenses143,439164,197197,980223,920234,650240,104260,093277,274243,081217,507253,734314,151350,866
Operating Profit22,21524,59634,85339,23938,39529,58931,45824,66417,98732,28724,72031,81650,919
OPM %13%13%15%15%14%11%11%8%7%13%9%9%13%
Other Income-74213-157714-2,6701,8695,933-26,686102-11,1182,4246,3284,682
Interest2,9823,5604,7494,8614,8894,2384,6825,7597,2438,0979,31210,22510,585
Depreciation5,6257,60111,07813,38916,71117,90521,55423,59121,42523,54724,83624,86026,392
Profit before tax13,53413,64718,86921,70314,1269,31511,155-31,371-10,580-10,474-7,0033,05818,625
Tax %-0%28%25%35%21%35%39%8%-4%-24%-60%23%
Net Profit13,5999,97614,05014,07311,6787,5579,091-28,724-11,975-13,395-11,3092,69015,672
EPS in Rs47.6034.6248.4648.4440.1125.8231.13-99.84-39.08-40.51-34.467.2746.16
Dividend Payout %9%6%5%0%1%0%0%0%0%0%0%32%

Tata Motors Ltd Profit & Loss Yearly Chart

Tata Motors Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:3%
3 Years:10%
TTM:33%
Compounded Profit Growth
10 Years:-13%
5 Years:-20%
3 Years:31%
TTM:496%
Stock Price CAGR
10 Years:10%
5 Years:44%
3 Years:41%
1 Year:112%
Return on Equity
10 Years:5%
5 Years:-8%
3 Years:-7%
Last Year:6%

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

Tata Motors Ltd 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

Tata Motors Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days182117171819252316191617
Inventory Days616469677377837382837166
Days Payable122137146131138138151133145175141128
Cash Conversion Cycle-43-51-60-47-46-41-43-38-48-74-53-45
Working Capital Days-53-57-41-44-47-50-50-53-68-48-32-23
ROCE %26%21%22%21%15%9%9%2%-0%6%1%6%

Tata Motors Ltd Financial Efficiency Indicators Chart

Tata Motors Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.41%46.41%46.41%46.40%46.40%46.40%46.40%46.39%46.39%46.39%46.38%46.37%
FIIs13.78%14.28%13.35%14.57%14.45%13.71%14.13%13.89%15.34%17.72%18.40%18.62%
DIIs11.91%11.47%13.30%13.64%14.38%15.17%14.75%15.21%17.69%17.38%17.37%17.25%
Government0.15%0.15%0.15%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%0.14%
Public27.75%27.69%26.80%25.24%24.62%24.57%24.58%24.36%20.41%18.38%17.70%17.60%
No. of Shareholders20,38,75720,80,87526,95,59032,52,51337,97,10040,08,50639,76,83039,93,04338,14,83135,02,40837,73,31441,84,369

Tata Motors Ltd Shareholding Pattern Chart

No. of Tata Motors Ltd Shareholders

Tata Motors Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF326789871.322054.36
SBI S&P BSE Sensex ETF234492961.551473.79
ICICI Prudential Equity & Debt Fund219002913.51920.03
Axis Bluechip Fund131687372.69827.85
Axis Long Term Equity Fund126518542.55795.36
ICICI Prudential Value Discovery Fund171233382.21719.35
HDFC Top 100 Fund - Regular Plan100865122.46634.09
SBI Balanced Advantage Fund99608002.57626.19
HDFC Balanced Advantage Fund - Regular Plan80968560.8509.01
ICICI Prudential Bluechip Fund109709991.12460.89

Tata Motors Ltd ROCE Trend

Tata Motors Ltd EPS Trend

Tata Motors Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.29-29.88-36.99-34.88-84.89
Diluted EPS (Rs.)6.29-29.88-36.99-34.88-84.89
Cash EPS (Rs.)71.0535.5227.5029.05-15.73
Book Value[Excl.RevalReserv]/Share (Rs.)137.33127.50148.39177.59178.74
Book Value[Incl.RevalReserv]/Share (Rs.)137.33127.50148.39177.59178.74
Revenue From Operations / Share (Rs.)903.28727.15652.37725.65889.07
PBDIT / Share (Rs.)95.4472.5391.2358.2681.36
PBIT / Share (Rs.)30.537.6729.73-1.2911.89
PBT / Share (Rs.)7.98-18.29-27.35-29.41-92.37
Net Profit / Share (Rs.)6.14-29.34-33.99-30.51-85.20
NP After MI And SOA / Share (Rs.)6.30-29.88-35.13-33.55-84.88
PBDIT Margin (%)10.569.9713.988.029.15
PBIT Margin (%)3.371.054.55-0.171.33
PBT Margin (%)0.88-2.51-4.19-4.05-10.38
Net Profit Margin (%)0.68-4.03-5.21-4.20-9.58
NP After MI And SOA Margin (%)0.69-4.10-5.38-4.62-9.54
Return on Networth / Equity (%)5.32-25.67-24.34-19.13-47.90
Return on Capital Employeed (%)6.451.636.14-0.252.49
Return On Assets (%)0.71-3.46-3.92-3.74-9.38
Long Term Debt / Equity (X)1.962.191.691.321.18
Total Debt / Equity (X)2.773.132.081.581.51
Asset Turnover Ratio (%)0.330.230.150.230.35
Current Ratio (X)0.970.970.930.850.84
Quick Ratio (X)0.710.740.700.580.58
Inventory Turnover Ratio (X)2.211.590.901.221.87
Interest Coverage Ratio (X)3.572.984.312.894.80
Interest Coverage Ratio (Post Tax) (X)1.07-0.131.09-0.111.12
Enterprise Value (Cr.)257016.64269283.40185136.4692326.40118036.02
EV / Net Operating Revenue (X)0.740.960.740.350.39
EV / EBITDA (X)7.039.705.304.404.27
MarketCap / Net Operating Revenue (X)0.460.590.460.090.19
Price / BV (X)3.553.732.090.400.98
Price / Net Operating Revenue (X)0.460.590.460.090.19
EarningsYield0.01-0.06-0.11-0.47-0.48

Tata Motors Ltd Profitability Ratios (%)

Tata Motors Ltd Liquidity Ratios

Tata Motors Ltd Liquidity Ratios (%)

Tata Motors Ltd Interest Coverage Ratios (%)

Tata Motors Ltd Valuation Ratios

Fair Value of Tata Motors Ltd Stock

Fair Value: ₹154.14

The stock is overvalued by 83.55% compared to the current price ₹937

*Investments are subject to market risks

Strength and Weakness of Tata Motors Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -47.17, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -49.08, which is a positive sign.
  3. The company has shown consistent growth in sales (270.46 cr) and profit (4.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 15.71 and average Dividend Yield of 2.03%.
  2. The stock has a low average ROCE of 11.50%, which may not be favorable.
  3. The company has higher borrowings (96,427.00) compared to reserves (56,672.77), which may suggest financial risk.

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