Check Before You Invest : Tata Motors Passenger Vehicles Ltd

Snapshot

Q.1 Which industry/sub-sector does Tata Motors Passenger Vehicles Ltd belong to?

Tata Motors Passenger Vehicles Ltd belongs to the Automobiles sector, operating specifically within the Automobiles - Passenger Cars segment.

Q.2 Is Tata Motors Passenger Vehicles Ltd a good quality company?

Tata Motors Passenger Vehicles Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Tata Motors Passenger Vehicles Ltd undervalued or overvalued?

Tata Motors Passenger Vehicles Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Tata Motors Passenger Vehicles Ltd a good buy now?

Tata Motors Passenger Vehicles Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd revenue growth is 1.3% for FY-2025, which is below its 5-year CAGR of 10.99%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Return on capital employed is 21.47% for FY-2025, which is above its 5-year historical median of 7.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Return on Asset is 6.39%, which is above its 5-year historical median of 0.82%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Return on equity is 23.18% for FY-2025, which is above its 5-year historical median of 5.99%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Cash conversion cycle is -31 days, below its 5-year historical median of -23 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.21	1.05
ROE	23.18	5.99
ROCE	21.47	7.67
Cash Conversion Cycle	-31 days	-23 days

Q.6 Gross Profit margin of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025, which is above its 5-year median of 10.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.5% for FY-2025, which is above its 5-year median of 11.68% indicating increasing margins.

Q.8 Net Profit Margin of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Net Profit Margin is 5.29% for FY-2025, is above with its 5-year median of 0.78%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13	10.7
Operating Profit Margin	12.5	11.68
Net Profit Margin	5.29	0.78

Q.9 Debt to Equity ratio of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Debt-to-Equity ratio is 0.54, which is above with the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Tata Motors Passenger Vehicles Ltd?

Tata Motors Passenger Vehicles Ltd Debt to cash flow from operations is 0.99, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tata Motors Passenger Vehicles Ltd?

Promoters hold 42.56% of the Tata Motors Passenger Vehicles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tata Motors Passenger Vehicles Ltd vs industry peers?

Tata Motors Passenger Vehicles Ltd revenue CAGR is 10.99%, compared to the industry median CAGR of 13.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.3	13.1
Gross Profit Growth	2.5	20.5
Operating Profit Growth	-4.9	22.7
Net Profit Growth	-28.3	20.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.21	1.27
ROE	23.18	14.44
ROCE	21.47	17.4
Cash Conversion Cycle (days)	-30.7	-24

Valuation & price assessment

Q.1 Stock return of Tata Motors Passenger Vehicles Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -1.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-1.6%	2.5%	-10.7%	-47.5%

Q.3 Valuation ratios of Tata Motors Passenger Vehicles Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	1.47	10.10	29.79
Price to Book	1.17	3.16	4.34
Price to Sales	0.34	0.55	2.59
EV to EBITDA	4.81	5.55	17.15

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