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Tata Motors Ltd Stock Analysis

Large Cap
Evaluated by 16648 users | BSE: 500570 | NSE: TATAMOTORS |
Automobiles-Trucks/Lcv

Tata Motors is a part of $100 billion Tata group founded by Jamsetji Tata in 1868. The company is among the world’s leading manufacturers of automobiles. The company is ‘Connecting aspirations’, by offering innovative mobility solutions that...

1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Motors Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 23.92%15.12%15.23%13.59%11.86%9.02%5.57%-2.64%-2.98%0.23%-
Value Creation Index 1.030.280.290.150.01-0.23-0.53-1.22-1.25NA-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,65,6541,88,7932,32,8342,63,1592,73,0462,69,6932,91,5503,01,9382,61,0682,49,7952,81,026
Y-o-Y Gr. Rt.-14%23.3%13%3.8%-1.2%8.1%3.6%-13.5%-4.3%-
Adjusted EPS (Rs.) 42.8632.5740.8943.2238.6329.2316.74-25.54-28.59-13.7-28.50
Y-o-Y Gr. Rt.--24%25.5%5.7%-10.6%-24.3%-42.7%-252.6%NANA-
Book Value per Share (Rs.) 101.66116.61201.59172.88232.51170.98281.01177.19172.89144.23153.00
Adjusted Net Profit 13,74710,50013,30314,06013,1189,9275,685-8,672-10,284-5,245-9,463
Net Op. Cash Flow (Rs. Cr.) 18,38422,16336,15135,53137,90030,19923,85718,89126,63329,001-
Debt to Cash Flow from Ops 2.562.421.682.071.832.63.735.614.464.69-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Motors Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.7%-1.8%-5%-4.3%
Adjusted EPS -188.1%-181.3%-193.5%NA
Book Value per Share 4-9.1-19.9-16.6
Share Price 3.3% -9.7% 4.4% 183.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 53.0129.8625.7723.0719.414.497.41-11.15-16.69-8.86-19.18
Operating Profit Margin (%) 13.2213.2614.2714.9313.6112.469.988.037.7111.6612.52
Net Profit Margin (%) 8.335.555.765.374.633.171.2-2.91-3.52-1.93-3.37
Debt to Equity 1.451.430.921.310.881.350.931.761.912.46-
Working Capital Days 9910810610097106121133150154-
Cash Conversion Cycle -18-24-29-29-24-18-15-14-20-31-
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 46.41%
Institutions 25.90%
Non-Institutions 17.32%
Others 10.37%
Pledged *4.674.674.673.953.953.953.953.951.821.82
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Motors Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Motors Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Motors Ltd's performance infers:

Tata Motors Ltd earnings have declined by -181.3%, whereas share price has depreciated -9.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tata Motors Ltd share prices over the last 10 years. Here is what we found out:

Tata Motors Ltd share price has depreciated 4.6% annually over the past ten years.

Tata Motors is a part of $100 billion Tata group founded by Jamsetji Tata in 1868. The company is among the world’s leading manufacturers of automobiles. The company is ‘Connecting aspirations’, by offering innovative mobility solutions that are in line with customers' aspirations. The company is India's largest automobile manufacturer, and it continues to take the lead in shaping the Indian commercial vehicle landscape, with the

Tata Motors is a part of $100 billion Tata group founded by Jamsetji Tata in 1868. The company is among the world’s leading manufacturers of automobiles. The company is ‘Connecting aspirations’, by offering innovative mobility solutions that are in line with customers' aspirations. The company is India's largest automobile manufacturer, and it continues to take the lead in shaping the Indian commercial vehicle landscape, with the introduction of leading-edge powertrains and electric solutions packaged for power performances and user comfort at the lowest life-cycle costs. The company’s new passenger cars and utility vehicles are based on Impact Design and offer a superior blend of performance, driveability and connectivity.

World-class manufacturing forms the essence of Tata Motors. In the manufacturing process, the company’s facilities ensure that every step - from design to production to assembly - follows the highest standards of quality. The company is driven by a passion for excellence, which is reflected across all its operations. To offer the best vehicle experience to its customers, its passionate engineering and quality talent ensures production of superior vehicles, which has led to the rapid growth in global demand for its products.

Business area of the company

The company is engaged in manufacturing of cars, utility vehicles, pick-ups, trucks and buses. Also, the company is India’s largest and the only OEM offering extensive range of integrated, smart and e-mobility solutions. It has operations in various countries through a strong global network of its subsidiaries.

Products

  • Cars and Sports Utility Vehicles
  • Trucks and Buses
  • Defence

Awards of the company

2016

  • For the year 2016, Tata Motors has been presented with India Risk Management Award (IRMA) - Supply Chain Risk Management Award, recognising the initiative to build a comprehensive framework to mitigate macro level company-wide risks including enterprise risk management initiatives taken.
  • Tata Motors, Pantnagar has received the Golden Peacock Environment Management Award (GPEMA) in Automobile sector (India), second time in a row.
  • Tata Motors ranked amongst top 25 best companies to work for - Business Today survey 2016.

2017

  • Best Learning Organization of Asia (2011-12).
  • Tata Motors goes big on its contribution to the ‘Skill India Mission’.
  • Tata Motors won the Business Today ‘Best Companies to Work For’ Award 2017.

2018

  • TML Starbus Hybrid received Special Recognition at the Apollo CV January Awards 2018.
  • TML Nexon received the prestigious Best Design Award of this Year by Autoportal.
  • Tata Hexa won ‘Best 4X4 of the Year’ at Autoportal Best Car Awards 2018.
  • Hexa Downtown won ‘Special Edition of the Year’ award at 2018 GaadiWaadi Reader’s Choice Award.
  • Tata Hexa won ‘Family Car of the Year’ award at 10th TopGear India Magazine Awards.

2019

  • Felicitated for initiating the drive of Clean Energy in India at the EV Tech India 2019 - ‘CEO Leadership Meet and Felicitation Event’ in Bangalore.
  • Pantnagar, Lucknow and Sanand teams from Executive and Non-Executive categories collectively bagged 111 awards in the 21st All India Creativity Summit by INSSAN at NIC Delhi.
  • Tata Ace has received an award for BW Pure: Purpose-Led Brand 2019 for its contribution towards the development of the nation.
  • Recognized as a Pitch Top 50 Brand 2019, an annual initiative by Exchange4Media group.
  • Tata Ace received an award for BW Pure: Purpose-Led Brand 2019 for its contribution towards the development of the nation.
  • Tata Harrier has won the best Design and Styling award at the Autocar India Awards.
  • Pratap B., Vice President- Global Design received the Design Icon award for Transportation Design at the Hyderabad Design Week.
  • Design of the Year” award for Tata Harrier at the Car and Bike India Awards 2020.
  • Acknowledged as the “Emerging Industry Leader” at the 25th JRD QV award function honouring JRD Tata’s 115th Birth Anniversary.
  • Listed again in the Top 10 Companies in the Indian Corporate Governance Scorecard by BSE Limited, the International Finance Corporation and the Institutional Investor Advisory Services (IiAS), with the financial support of the Government of Japan.
  • Girish Wagh, President, CVBU, Tata Motors, won “CV Man of the Year” Apollo CV Awards 2020.
  • ERC Project was selected as one of the Most Innovative Projects by the Jury of GreenCo Assessors as well as one of the 3 Most Useful Projects by the participants at the CII Environmental Best Practices Awards.
  • Awarded the prestigious Golden Peacock award in Occupational Health & Safety for 2019.
  • Received the 5th Tata Affirmative Action Programme (TAAP) Jury award and the Best Practice Award for LEAP, a skill development program for underprivileged at the Tata Affirmative Action Programme Convention 2018-19 by TBExG.

2020

  • Automotive - OEM Large” in the Front Bumper & Upper Grill category & “Green Automotive Solution of the Year” at the fourth edition of ‘The Economic Times Polymers Awards 2020’.
  • CV Maker of the Year - Apollo CV Awards 2020.
  • Awarded with Best Design, Facebook People’s Choice Best Pavilion and Best CV Pavilion by CNB Auto Expo Excellence Awards at Auto Expo 2020.
  • CV parts entry ‘DigiVOR’ received three awards in rapid succession - TML Innovista Award, Golden Peacock Award and World Innovation Congress Award. It also made it to the final round of the Tata Group Innovista competition.

Milestones

  • 1945: Tata Motors established.
  • 1945: Manufacturing of locomotives and other engineering products.
  • 1948: Steam road roller introduced in collaboration with Marshall Sons (UK).
  • 1954: Out rolled the first commercial vehicle, The TMB 312 truck.
  • 1964: The 1210 series of vehicles set out from Jamshedpur.
  • 1969: Telco began to travel under Tata brand.
  • 1975: Indian road discover the tata 1210 semi-forward model.
  • 1983: Manufacture of Heavy Commercial Vehicle commences.
  • 1986: tata LCV 407 from Telco.
  • 1989: The multi utility Tata Mobile.
  • 1991: Launch of the first indigenous passenger vehicle Tata Sierra.
  • 1992: Launch of Tata Estate.
  • 1994: Launch of Tata Sumo- The multi utility vehicle.
  • 1995: Telco brings three-pointed star to India.
  • 1998: Tata Safari - India’s first sports utility vehicle launched.
  • 1998: Tata Indica - India’s first fully indigenous passenger car launched.
  • 2002: India’s first fully indigenous sedan debut with class leading features.
  • 2004: Launch of Tata NOVUS by Tata Daewoo.
  • 2004: Launch of Tata Indigo Marina.
  • 2005: Launch of wide range of fully build busses and coaches called ‘GLOBUS’ and ‘STARBUS’ brands.
  • 2005: Launch of India’s first mini truck - Tata ACE.
  • 2005: Launch of Tata TL4x4, India’s first Sports utility truck (SUT).
  • 2007: Launch of Tata Magic, a comfortable safe four-wheeler public transportation mode, developed on the Ace platform.
  • 2007: Launch of Tata Winger, India’s only maxi-van.
  • 2008: Launch of Tata Indigo CS (Compact Sedan), world’s first sub four- meter sedan.
  • 2009: Launch of Tata Nano.
  • 2009: Launch of Tata prima range of world standard trucks.
  • 2009: Launch of Jaguar Land Rover range in India.
  • 2009: Launch of Tata Manza, the new generation Indigo.
  • 2010: Launch of Tata Aria, the first Indian four-wheel drive crossover.
  • 2011: Launch of Tata Venture.
  • 2011: Launch of Tata Magic Iris.
  • 2011: Launch of Tata Ace Zip
  • 2012: Launch of Tata Safari Storme, the real SUV.
  • 2014: Launch of Tata Armoured personnel Career (APC) Left Hand Drive (LHD).
  • 2014: Launch of Compact Sedan Tata Zest.
  • 2015: Launch of Tata Macropolo’s New magma Luxury Coach.
  • 2015: Launch of India’s first multi drive and sporty Hatchback Tata Bolt, with Revotron 1.2Tpetrol engine.
  • 2016: Launch of Tata Tiago.
  • 2017: Launch of Tata Xenon Yodha, Starbus Hybrid, Hexa, Tigor, AMT Bus, Tiago AMT, Naxon and Tigor EV.
  • 2017: Introduces new sub brand TAMO.
  • 2018: Launch of Tata ACE Gold, Naxon AMT, Harrier and NEX-GEN Ultra range of trucks.
  • 2019: Tata Motors celebrates 2-lakh sales milestone of its most loved hatchback, the Tata Tiago in India
  • 2019: Tata Motors unveils India’s own Electric SUV, the Nexon EV
  • 2019: Tata Motors rolls out the 1st ALTROZ from its Pune plant
  • 2020: Tata Motors Achieves the Milestone of Producing 4 Million Passenger Vehicles
  • 2020: 1.5 million and counting: Jaguar Land Rover celebrates clean engine manufacturing milestone.
  • 2020: Tata Motors launches the XM+ variant of the Altroz.
  • 2020: Tata Motors introduces Harrier CAMO edition of its flagship SUV
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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