BSE:500570

Stock Analysis Report

Executive Summary

Tata Motors Limited designs, develops, manufactures, and sells a range of automotive vehicles.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • Tata Motors has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Tata Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

BSE:500570

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-52.9%

BSE:500570

-32.9%

IN Auto

-12.1%

IN Market

500570 underperformed the Auto industry which returned -33% over the past year.

500570 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

500570IndustryMarket
7 Day-0.7%-1.5%-0.7%
30 Day-24.6%-3.5%-4.6%
90 Day-31.4%-13.4%-4.3%
1 Year-52.9%-52.9%-31.9%-32.9%-10.3%-12.1%
3 Year-76.2%-76.2%-19.9%-22.5%18.9%12.8%
5 Year-76.0%-76.3%6.1%1.0%37.6%24.7%

Price Volatility Vs. Market

How volatile is Tata Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Motors undervalued based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tata Motors's share price is below the future cash flow value, and at a moderate discount (> 20%).

Tata Motors's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Tata Motors is loss making, we can't compare its value to the IN Auto industry average.

Tata Motors is loss making, we can't compare the value of its earnings to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Tata Motors, we can't assess if its growth is good value.


Price Based on Value of Assets

Tata Motors is good value based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is Tata Motors expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

65.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tata Motors's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Tata Motors's earnings are expected to grow significantly at over 20% yearly.

Tata Motors's revenue growth is positive but not above the India market average.

Tata Motors's earnings growth is expected to exceed the India market average.

Tata Motors's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Tata Motors is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Tata Motors performed over the past 5 years?

-57.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tata Motors does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Tata Motors's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Tata Motors's 1-year growth to the IN Auto industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Tata Motors has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Tata Motors has efficiently used its assets last year compared to the IN Auto industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Tata Motors improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Tata Motors's financial position?


Financial Position Analysis

Tata Motors's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tata Motors's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tata Motors's level of debt (181.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (94.5% vs 181.6% today).

Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).

Tata Motors is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Tata Motors's current dividend yield, its reliability and sustainability?

0.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Tata Motors's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Tata Motors's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Tata Motors has not reported any payouts.

Unable to verify if Tata Motors's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Tata Motors has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (17.2x coverage).


Next Steps

Management

What is the CEO of Tata Motors's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Guenter Butschek (59yo)

3.5yrs

Tenure

₹263,208,000

Compensation

Mr. Guenter Butschek has been the Chief Executive Officer and Managing Director at Tata Motors Limited since February 15, 2016. Mr. Butschek leads all operations of Tata Motors in India and in internationa ...


CEO Compensation Analysis

Guenter's remuneration is higher than average for companies of similar size in India.

Guenter's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

56yo

Average Age

The average tenure for the Tata Motors management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

The average tenure for the Tata Motors board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹1,842,780,89601 Mar 19
Tata Sons Private Limited
EntityCompany
Shares10,255,543
Max Price₹182.19
Buy₹1,597,070,14322 Feb 19
Tata Sons Private Limited
EntityCompany
Shares9,604,176
Max Price₹174.00
Buy₹1,839,269,70515 Feb 19
Tata Sons Private Limited
EntityCompany
Shares11,814,952
Max Price₹159.27
Buy₹5,023,493,34820 Aug 18
Tata Sons Private Limited
EntityCompany
Shares19,700,000
Max Price₹268.62
Buy₹6,668,451,27920 Aug 18
Tata Sons Private Limited
EntityCompany
Shares26,100,000
Max Price₹268.62

Ownership Breakdown


Management Team

  • Vivek Srivatsa

    Head of Marketing - PVBU

    • Tenure: 3.1yrs
  • Hoshang Sethna (56yo)

    Company Secretary & Compliance Officer

    • Compensation: 98.34m
  • Ranen Chatterjee (70yo)

    Head of Purchase

    • Compensation: 3.36m
  • Petkar Rajendra (52yo)

    Chief Technology Officer

    • Tenure: 1.3yrs
  • Ashmita Pillay

    Deputy General Manager of Corporate Communications

  • Pathamadai Balaji (50yo)

    Group Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: 82.64m
  • G. P. Kumar

    President & Chief Human Resources Officer

    • Tenure: 0.7yrs
  • Vijay Somaiya

    Head of Treasury & Investor Relations

  • Guenter Butschek (59yo)

    CEO, MD & Additional Director

    • Tenure: 3.5yrs
    • Compensation: 263.21m
  • Natarajan Chandrasekaran (56yo)

    Non-Executive Chairman

    • Compensation: 600.00k

Board Members

  • Ratan Tata (82yo)

    Chairman Emeritus

    • Tenure: 6.7yrs
    • Compensation: 3.67m
  • Guenter Butschek (59yo)

    CEO, MD & Additional Director

    • Tenure: 3.5yrs
    • Compensation: 263.21m
  • Om Bhatt (68yo)

    Non-Executive Independent Director

    • Tenure: 2.3yrs
    • Compensation: 9.82m
  • Natarajan Chandrasekaran (56yo)

    Non-Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: 600.00k
  • Ralf Speth (64yo)

    Non-Executive Director

    • Tenure: 8.8yrs
  • Hanne Birgitte Breinbjerg Sørensen (54yo)

    Non-Executive Independent Director

    • Tenure: 1.6yrs
    • Compensation: 7.86m
  • Vedika Bhandarkar (52yo)

    Independent Director

    • Tenure: 0.2yrs

Company Information

Tata Motors Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tata Motors Limited
  • Ticker: 500570
  • Exchange: BSE
  • Founded: 1945
  • Industry: automobile manufacturers
  • Sector: automobiles
  • Market Cap: ₹378.702b
  • Shares outstanding: 3.40b
  • Website: Click here

Number of Employees


Location

  • Tata Motors Limited
  • Ahura Centre
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TATAMOTORSNSEI (National Stock Exchange of India)YesOrdinary SharesININRAug 1998
500570BSE (Mumbai Stock Exchange)YesOrdinary SharesININRAug 1998
570001BSE (Mumbai Stock Exchange)A Ordinary SharesININRNov 2008
TTMNYSE (New York Stock Exchange)SPONSORED ADRUSUSDSep 2004
TTMSWX (SIX Swiss Exchange)SPONSORED ADRCHCHFSep 2004
TTM NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNSep 2004
TATAMTRDVRNSEI (National Stock Exchange of India)A Ordinary SharesININRNov 2008
TATBWBAG (Wiener Boerse AG)SPONSORED ADRATEURSep 2004
TATBDB (Deutsche Boerse AG)SPONSORED ADRDEEURSep 2004

Biography

Tata Motors Limited designs, develops, manufactures, and sells a range of automotive vehicles. It offers cars, sports utility vehicles, trucks, buses, and defence vehicles, as well as related spare parts a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:39
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.