Tata Motors Group is the topmost global automobile creator and manufacturer. The Tata motors group have wide and huge portfolio of cars, sports utility vehicle, trucks, buses and defense vehicles.
It is working in India, United Kingdom, South Korea, China, Brazil, Austria, and Slovakia. Tata motors group has a strong network of global subsidiaries and associate companies.
Tata Motors works in the manufacturing of Jaguar Land Rover in the UK and Tata Daewoo in South Korea.
Jaguar Land Rover Ltd
Tata Motors Ltd bought this iconic British brand Jaguar and Land Rover from Ford Company in the year 2008 and then merged them together in 2013. At first, the company faced fundamental challenges that ensure JLR’s sustainability and successful future. In the year 2020, Land Rover accounted for 74% of sales of the JLR, and the rest 26% sales were contributed by Jaguar brand automobiles.
Tata Daewoo Commercial Vehicle Co. Ltd
TML overtake acquired Korea’s second-largest truck maker Daewoo Commercial Vehicles in the year 2004. Today, it has emerged as a global player in the comprehensive commercial vehicle sector and it exports to more than 60 countries. It is working with TML to simultaneously grow into global market leaders.
In Leadership position in India’s CV Industry.
TML is a formidable player in the CV segment in India and offers a broad portfolio of automotive products including trucks, buses, coaches, and defense vehicles. It is the leading player in the CV segment, with a market share of 43.0% during FY20.
Geographical Revenue Breakup
- North Korea 20%
- India 17%
- UK 16.3%
- China 11.4%
- Rest of Europe 16.6%
Sustainable Mobility Solutions
Both Tata Motors and JLR are working towards their electrification journey. Today, Tata Motors is the leader in the EV segment in India with its automobiles Tiger EV and Nixon EV. It managed to sell 2,600 units of its EVs in 2020 which translated into a 63% market share.
Robust Infrastructure.
The Group owns 10 manufacturing facilities in India, 5 in the UK, 2 in Europe, and has also set up a manufacturing facility in China in a Joint Venture with Chery Automobiles. It also operates various R&D centers from the UK, North America, Europe, and India.
Tata Motors Today
 | Consumer Cyclical |
 | Auto Manufacturers |
 | Shivasagar Estate,, Mumbai, India |
 | India |
 | 91 22 6757 7200 |
 | http://www.tatamotors.com |
Tata Motors Chart
Tata Motors index presence
Tata Motors stock is present in 28 indices list
| NIFTYAUTO | NIFTY100WEIGHT | NIFTYEQWGT |
| NIFTY200 | LIQ15 | NIFTYTATA |
| BSE200 | SENSEX | BSE500 |
| MFG | BSE100 | CARBONEX |
| AUTO | LRGCAP | SPBSEVIP |
| NIFTY50 | NIFTY500 | NIFTY100 |
| NIFTYLGEMID205 | NIFTYHIGHBETA | NIFTYTATA25 |
| LMI250 | ALLCAP | SNSX50 |
| BASE100LARGECAPTMC | INDSTR | S&PLARGEMIDCAP |
| ESG100 |
Tata Motors infographics
Overview of Tata Motors
Key Takeaway
- Current price of Tata Motors stock is lower than Intrinsic value.
- Tata Motors stock does not offer great retuns as compare to fixed-deposits in past.
- This stock gave high dividend returns which is a good factor consider for investment.
- Tata Motors stock is not ASm/GSM list. It does not have any red flags.
Key Metrics
| PE Ratio | Sector PE | PB Ratio | Sector PB | Dividend Yield | Sector Div Yld |
| -11.14 | -455.6 | 2.64 | 6.15 | — | 0.51% |
Key Takeaway
- Currently Tata Motors have negative PE ratio which is a factor to consider in investing.
- Sector PE is also negative.
- This stock has a good PB ratio.
- This stock has offered good dividends in the past.
Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics
Financials of Tata Motors
Income statement of Tata Motors
| Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Total Revenue | 2,99,128.27 | 3,05,280.69 | 2,64,179.78 | 2,54,329.93 |
| EBITDA | 37,390.41 | -2,021.92 | 18,088.78 | 21,169.60 |
| PBIT | 15,836.82 | -25,612.55 | -3,336.65 | -2,377.11 |
| PBT | 11,155.03 | -31,371.15 | -10,579.98 | -10,474.28 |
| Net Income | 8,988.91 | -28,826.23 | -12,070.85 | -13,451.39 |
| EPS | 26.47 | -84.88 | -37.23 | -41.97 |
| DPS | 0 | 0 | 0 | 0 |
| Payout ratio | 0 | 0 | 0 | 0 |
Key Takeaway
Income statement
Over the last 5 years, revenue has grown at a yearly rate of -1.34%, vs industry avg of -0.23%
Decreasing market share
Over the last 5 years, market share decreased from 66.1% to 38.57%
A balance sheet of Tata motors
| Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Current Assets | 1,35,972.84 | 1,23,431.16 | 1,19,587.25 | 1,46,887.64 |
| Non Current Assets | 1,91,218.97 | 1,82,272.33 | 2,00,592.14 | 1,94,682.27 |
| Total Assets | 3,27,191.81 | 3,05,703.49 | 3,20,179.39 | 3,41,569.91 |
| Current Liabilities | 1,43,219.47 | 1,45,457.43 | 1,40,454.05 | 1,57,749.18 |
| Non Current Liabilities | 88,019.37 | 99,543.44 | 1,15,833.25 | 1,27,000.52 |
| Total Liabilities | 2,31,238.84 | 2,45,000.87 | 2,56,287.30 | 2,84,749.70 |
| Total Equity | 95,952.97 | 60,702.62 | 63,892.09 | 56,820.21 |
| Total Liabilities & Shareholder’s Equity | 3,27,191.81 | 3,05,703.49 | 3,20,179.39 | 3,41,569.91 |
| Total Common Shares Outstanding | 339.61 | 339.61 | 308.92 | 332 |
Key Takeaway
Balance sheet
Higher than Industry debt to equity ratio
Over the last 5 years, the debt to equity ratio has been 169.48%, vs industry avg of 110.41%
Lower than industry current ratio
Over the last 5 years, the current ratio has been 91.7%, vs industry avg of 98.81%
Cash Flow statement of Tata motors stock
| Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
| Net Change in Cash | 729.99 | 6,843.05 | -3,092.00 | 13,232.21 |
| Changes in Working Capital | -9,454.86 | -9,880.12 | 3,280.46 | -2,197.13 |
| Capital Expenditures | 35,078.92 | 35,303.52 | 29,702.03 | 20,205.40 |
| Free Cash Flow | -11,221.50 | -16,412.77 | -3,069.09 | 8,795.11 |
Key Takeaway
Lower than Industry Free Cash Flow Growth
Over the last 5 years, free cash flow growth has been 6.58%, vs an industry avg of 20.23%
Peers of Tata motors
| Stock | PE Ratio | PB Ratio | Dividend Yield |
| Tata Motors Ltd | -10.18 | 2.41 | — |
| Maruti Suzuki India Ltd | 51.14 | 4.28 | 0.61% |
| Tata Motors Ltd – DVR | -10.47 | — | — |
| Mahindra and Mahindra Ltd | 57.81 | 2.07 | 0.93% |
Key Takeaway
- Tata motors stock have negative PE ratio than its peers
- Maruti suzuki have PE ratio of 51.14 which is greater Tata motors.
- Mahindra and Mahindra Ltd stock have highest PE ratio 57.18 than its peers.
Promoter Holdings Trend
Increase total promoter holding
In the last 6 months, promoter holding in the company has increased by 4.01%
Low pledged promoter holding
Pledged promoter holdings are insignificant
Institutional Holdings Trend
Mutual fund holding
In the last 3 months, the mutual fund holding of the company has almost stayed constant
Foreign Institutional holding
In last 3 months, foreign institutional holding of the company has almost stayed constant
| Investors | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | Mar-20 | Jun-20 | Sep-20 | Dec-20 | Mar-21 | Jun-21 |
| Promoters | 37.27 | 37.27 | 38.37 | 38.37 | 38.37 | 42.39 | 42.39 | 42.39 | 42.39 | 42.39 | 46.41 | 46.41 |
| FIIs | 18.79 | 18.99 | 19.14 | 19.51 | 18.95 | 18.32 | 16.84 | 15.62 | 15.84 | 15.61 | 13.78 | 14.28 |
| DIIs | 17.25 | 17.3 | 16.1 | 15.83 | 15.5 | 14.89 | 13.42 | 13.22 | 13.06 | 12.56 | 11.91 | 11.47 |
| Government | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 |
| Public | 26.52 | 26.27 | 26.22 | 26.12 | 27.01 | 24.24 | 27.19 | 28.6 | 28.55 | 29.27 | 27.75 | 27.69 |
Key Takeaway
- The promotors kept on increasing their stakes in Tata motors. They have kept more than 46% investment in this stock
- FIIs(Foreign Institutional Investors) limited their stakes in Tata motors by 4% compared to year 2018
- Domestic institutional investors (DIIs) also decreased their investments 17% to 11% in the year 2021.
- Government decent investment in NTPC stocks.
- Whereas Public have increase their investment to 27% which is more than FIIS and DIIS
Dividend and Split
Dividends Table
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹0.20 | 18-Jul-16 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹2.00 | 9-Jul-14 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹2.00 | 30-Jul-13 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹4.00 | 18-Jul-12 |
| Cash Dividend | Dividend/Share | Ex Date |
| Final | ₹20.00 | 19-Jul-11 |
Dividend Trends
No Dividends
TATAMOTORS has not given any dividends in the last 5 years
Key Takeaway
- Tata motors gave good amount of dividend in the past.
- Currently they do not offer any dividend recently.
- Tata motors did not give any split in past.
Read more about dividend and dividend yield with infographics
Strength & Limitations
Strengths
- The company has an efficient Cash Conversion Cycle of -13.43 days.
- The company has a strong degree of Operating leverage, Average Operating leverage stands at 14.06.
Limitations
- The company has shown a poor profit growth of -168.02% for the Past 3 years.
- The company has shown a poor revenue growth of -6.69% for the Past 3 years.
- Company has a poor ROE of -13.44% over the past 3 years.
- Company has a poor ROCE of -0.51% over the past 3 years
Expert Forecast of Tata Motors
The stock forecast of Tata motors stock for the year 2022
High
₹497.30
Median
₹363.53
Low
₹155.10
Future stock price targets of Tata Motors stock
| The target of TATA MOTORS Stock | Future Stock Price |
| 2022 | 470 to 497 |
| 2025 | 650 to 704 |
| 2030 | 1400 to 1416 |
| 2035 | 2500 to 2834 |
| 2040 | 5200 to 5700 |
Please Note
These are the stock forecast or stock predictions solely based on historical data and related estimates by industry experts. Please do take advice from certified people and then go for investment.
Here predictions are just data for your information. We here declare that the stock forecast team does not responsible for any price changes or the price does not go expected. At last, it is solely based on how the stock market is running at that certain conditions.
Stock Forecast Predictions
Tata Motors stock is not doing well in terms of ratios.
This stock had a CAGR of more than 28% from the last 3 years but failing to deliver in ratios.
Earnings per share (EPS) is 24.59
The price-to-earnings ratio is 17 from the last 3 years.
What if I invest in 100 stocks for the upcoming years? You will be happy by the return showing in the image above
These are future investment values are calculated based on a CAGR(Compound Annual Growth Rate) of 28%.
If this stock keeps CAGR average value for upcoming years, then look at the huge numbers
For my investment of Rs. 41800(100 Tata Motors stocks)
For the first year, I will be getting more than 53 Thousand
For the next 5 years, the Investment will be more than 1.43, Lac
then for the next 10 years, the investment will touch more than 4L.
For the next 15 years, more than 16 Lacs will be the investment value.
and in the next 20 years, the investment will touch more than 58 Lacs.
Look at after 25 years number, they are huge. More than 2 Crore.
You must be laughing but CAGR with compounding giving this amazing result.
Read How Rs.10,000 converted into 1770 Crores Wipro case study?
Conclusion
Everybody in India knows how is Tata group emerging throughout the years in various sectors. Now I am writing about Tata motors and its stock reached Rs.480 with an increase of more than 77 rupees which is due to good news going around the stock market about this stock.
Tata group always delivers their promises and this stock could be a multi-bagger in upcoming years for the investors.
That’s why it is a favorite stock for the investors and Tata motors stock gained trust among shareholders.
Check Tata motors stock on NSE
Frequently Asked Questions
Ans: Well the answer depends mainly on two factors. One is how much shares the seller wants to sell and the second is how much capital you afford to buy the large quantity of Tata motors stocks.
Ans: Rakesh Jhunjhunwala bought 24% stakes in Tata motors. This could be a reason because he is known as the big bull in the stock market and people follow him.
Ans: Yes it is appreciating and increasing with the news of new investments in this stock.
Ans: No this stock is not in ASM?GSM list and it does not have any red flag.
Ans: We suggest you not to sell your 500 quantity. You are already in huge profit because the stock is reached 500 today on 13 Oct 2021. It can be multi-bagger stock in the future. Have patience and hold it tight for a long time.
Ans: Hold the shares tight for more upcoming years. You could be crorepati in few upcoming 15 to 20 years.
Ans: Tata motors is a Largecap stock. With a market cap of ₹1,49,798 cr, the stock is ranked 34 on the list.
Ans: Fundamentally this stock is not up to the mark but Investors are willing to invest in this stock. Rakesh Jhunjhunwala has bought 24% stakes in this stock. Due to new investment and good news going around the stock market, this stock crashed 500 today on 13 Oct 2021.
Why Stock forecast by Kamlesh Rode?
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