Tata Motors Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹373,629.28 crore, PE ratio of 11.9, debt-to-equity ratio of 115.22, and return on equity of 43.1%. These figures reflect the company’s financial health and current market valuation.
Content:
- Tata Motors Ltd Overview
- Tata Motors Ltd Financial Results
- Tata Motors Ltd Financial Analysis
- Tata Motors Ltd Company Metrics
- Tata Motors Stock Performance
- Tata Motors Ltd Peer Comparison
- Tata Motors Shareholding Pattern
- Tata Motors History
- How To Invest In Tata Motors Ltd Share?
- Tata Motors Limited Fundamental Analysis – FAQs
Tata Motors Ltd Overview
Tata Motors Ltd is a leading global automobile manufacturing company. It operates in the automotive sector, producing a wide range of vehicles including cars, commercial vehicles, and defence vehicles.
The company has a market capitalisation of ₹373,629.28 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 15.99% below its 52-week high and 71.32% above its 52-week low.
Tata Motors Ltd Financial Results
Tata Motors Ltd showed significant growth from FY 22 to FY 24, with sales increasing from ₹2,78,454 crore to ₹4,37,928 crore and net profit rising from a loss of ₹-11,309 crore to a gain of ₹31,807 crore. The company improved its OPM and EPS over the years.
1. Revenue Trend: Sales increased from ₹2,78,454 crore in FY 22 to ₹3,45,967 crore in FY 23, and further to ₹4,37,928 crore in FY 24, indicating strong revenue growth.
2. Equity and Liabilities: Interest expenses rose slightly from ₹9,312 crore in FY 22 to ₹9,986 crore in FY 24, suggesting increased financial liabilities or borrowing. Depreciation remained relatively stable.
3. Profitability: Operating Profit Margin (OPM) improved from 9% in FY 22 to 14% in FY 24, reflecting enhanced operational efficiency. EBITDA also saw significant growth from ₹27,774 crore in FY 22 to ₹65,488 crore in FY 24.
4. Earnings per Share (EPS): EPS showed a remarkable turnaround from ₹-30 in FY 22 to ₹82 in FY 24, indicating strong profit growth per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the significant increase in net profit from ₹-11,309 crore in FY 22 to ₹31,807 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.
Tata Motors Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 4,37,928 | 3,45,967 | 2,78,454 |
| Expenses | 3,78,389 | 3,14,047 | 2,53,734 |
| Operating Profit | 59,538 | 31,920 | 24,720 |
| OPM % | 14 | 9 | 9 |
| Other Income | 4,973 | 6,224 | 2,424 |
| EBITDA | 65,488 | 36,553 | 27,774 |
| Interest | 9,986 | 10,225 | 9,312 |
| Depreciation | 27,270 | 24,860 | 24,836 |
| Profit Before Tax | 27,255 | 3,058 | -7,003 |
| Tax % | -14 | 23 | -60 |
| Net Profit | 31,807 | 2,690 | -11,309 |
| EPS | 82 | 6 | -30 |
| Dividend Payout % | 7.32 | 31.8 | 0 |
* Consolidated Figures in Rs. Crores
Tata Motors Ltd Company Metrics
Tata Motors’ market capitalization is ₹373,629.28 crore. The book value is ₹255 per share, and the face value per share is ₹2. The company has a total debt of ₹107,262.5 crore, an ROE of 43.1%, and a quarterly EBITDA of ₹17,532 crore. Dividend yield is 0.54%.
Market Capitalization:
Market Capitalization represents the total market value of Tata Motors’ outstanding shares, amounting to ₹373,629.28 crore.
Book Value:
The book value per share of Tata Motors Ltd is ₹255 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Tata Motors’ shares is ₹2, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 1.26 measures how efficiently Tata Motors uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Tata Motors stands at ₹107,262.5 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 43.1% measures Tata Motors’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Tata Motors is ₹17,532 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.54% shows the annual dividend payment as a percentage of Tata Motors’ current share price, indicating the return on investment from dividends alone.
Tata Motors Stock Performance
Tata Motors Ltd delivered returns of 74.6% in one year, 53.5% over three years, and 54.3% over five years, showcasing robust growth. This performance highlights the company’s strong capacity to provide substantial returns across various investment periods.
| Period | Return on Investment (%) |
| 1 Year | 74.6 |
| 3 Years | 53.5 |
| 5 Years | 54.3 |
Example: If an investor had invested ₹1,000 in Tata Motors’ stock:
1 year ago, their investment would be worth ₹1,746.
3 years ago, their investment would have grown to ₹1,535.
5 years ago, their investment would have increased to approximately ₹1,543.
Tata Motors Ltd Peer Comparison
Tata Motors Ltd, with a CMP of ₹1,068 and a P/E ratio of 12, has a market cap of ₹3,92,244 Cr and a one-year return of 75%. Compared to peers like Ashok Leyland (35% return) and Force Motors (151% return), Tata Motors demonstrates strong but varied performance within the automotive sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| Tata Motors | 1,068 | 12 | 3,92,244 | 75 | 1,60,67,751 | 4.63 | 0.91 | 9.41 | 17.17 |
| Ashok Leyland | 253 | 30 | 74,321 | 35 | 1,25,71,979 | 12 | 0.98 | 2.28 | 47.71 |
| Tata Motors-DVR | 732 | 37,210 | 82 | 46,95,069 | 6 | 0.91 | 9.05 | 21.89 | |
| Olectra Greentec | 1,562 | 167 | 12,822 | 52 | 3,89,325 | -15 | 0.7 | 29.70 | -19.74 |
| Force Motors | 8,404 | 25 | 11,077 | 151 | 20,738 | -1.29 | 0.82 | 18.23 | 97.26 |
| SML ISUZU | 2,068 | 24 | 2,993 | 62 | 22,687 | 1.37 | 0.83 | 16.60 | 40.67 |
Tata Motors Shareholding Pattern
Tata Motors Ltd’s shareholding pattern saw slight changes from December 2023 to June 2024. Promoter holdings remained stable at 46.36%. FII holdings decreased from 18.62% to 18.18%, while DII holdings slightly decreased from 17.33% to 16.01%. Retail and others’ shares increased from 17.66% to 19.45%.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 46.36 | 46.36 | 46 |
| FII | 18.18 | 19.2 | 18.62 |
| DII | 16.01 | 16.09 | 17.33 |
| Retail & others | 19.45 | 18.37 | 17.66 |
Tata Motors History
Tata Motors Limited is a global automobile manufacturing company with a diverse portfolio. It produces a wide range of vehicles including cars, SUVs, trucks, buses, and defence vehicles. The company’s operations span across multiple segments, catering to various transportation needs.
Tata Motors’ automotive segment is divided into four main sub-segments. These include Tata Commercial Vehicles, which manufactures small to heavy commercial vehicles; Tata Passenger Vehicles, producing cars and utility vehicles under the Tata and Fiat brands; Jaguar Land Rover, manufacturing luxury vehicles; and Vehicle Financing services.
In addition to its core automotive business, Tata Motors has diversified into other operations. These include information technology services, machine tools, and factory automation solutions. This diversification strategy allows the company to leverage its expertise across different sectors of the automotive and related industries.
How To Invest In Tata Motors Ltd Share?
To invest in Tata Motors Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Tata Motors shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Tata Motors Limited Fundamental Analysis – FAQs
The Fundamental analysis of Tata Motors examines key financial metrics: Market Cap (₹373,629.28 crore), PE Ratio (11.9), Debt to Equity (115.22), and Return on Equity (43.1%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the automotive sector.
The market capitalization of Tata Motors Ltd is ₹373,629.28 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Tata Motors Limited is a global automobile manufacturing company. It produces a wide range of vehicles including cars, commercial vehicles, and defence vehicles. The company operates through various segments including Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing.
Tata Motors is a public limited company, part of the Tata Group. While the Tata Group, through its holding companies, owns a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Tata Motors typically include Tata Sons (the holding company of Tata Group) as a major stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Tata Motors operates in the automotive industry. It is primarily engaged in the manufacturing, assembly, and sale of vehicles including passenger cars, commercial vehicles, and luxury vehicles through its Jaguar Land Rover division. The company also provides related services such as vehicle financing.
To invest in Tata Motors shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Tata Motors is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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