Stock Analysis

Tata Motors (NSE:TATAMTRDVR) shareholders have earned a 60% CAGR over the last three years

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Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. Not every pick can be a winner, but when you pick the right stock, you can win big. One such superstar is Tata Motors Limited (NSE:TATAMTRDVR), which saw its share price soar 306% in three years. It's also good to see the share price up 20% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 12% in 90 days).

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for Tata Motors

Given that Tata Motors didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years Tata Motors has grown its revenue at 0.8% annually. Considering the company is losing money, we think that rate of revenue growth is uninspiring. Therefore, we're a little surprised to see the share price gain has been so strong, at 60% per year, compound, over three years. A win is a win, even if the revenue growth doesn't really explain it, in our view). The company will need to continue to execute on its business strategy to justify this rise.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NSEI:TATAMTRDVR Earnings and Revenue Growth August 12th 2022

Tata Motors is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Tata Motors will earn in the future (free analyst consensus estimates)

A Different Perspective

It's good to see that Tata Motors has rewarded shareholders with a total shareholder return of 62% in the last twelve months. That gain is better than the annual TSR over five years, which is 0.4%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. You could get a better understanding of Tata Motors' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

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Tata Motors

Tata Motors Limited designs, develops, manufactures, and sells various automotive vehicles.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth5
Past Performance0
Financial Health3

Read more about these checks in the individual report sections or in our analysis model.

High growth potential and fair value.