NSEI:TATAMTRDVR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with worrying balance sheet.


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

14.0%

TATAMTRDVR

8.2%

IN Auto

3.9%

IN Market


1 Year Return

-36.0%

TATAMTRDVR

-0.05%

IN Auto

6.0%

IN Market

Return vs Industry: TATAMTRDVR underperformed the Indian Auto industry which returned -0% over the past year.

Return vs Market: TATAMTRDVR underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

TATAMTRDVRIndustryMarket
7 Day14.0%8.2%3.9%
30 Day-0.4%17.3%7.8%
90 Day-17.9%15.5%2.5%
1 Year-36.0%-36.0%1.4%-0.05%8.2%6.0%
3 Year-82.8%-82.8%-12.6%-15.2%23.0%16.7%
5 Year-80.8%-81.0%14.5%8.9%43.5%30.0%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TATAMTRDVR (₹61.4) is trading below our estimate of fair value (₹163.38)

Significantly Undervalued: TATAMTRDVR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TATAMTRDVR is unprofitable, so we can't compare its PE Ratio to the Auto industry average.

PE vs Market: TATAMTRDVR is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate TATAMTRDVR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TATAMTRDVR is good value based on its PB Ratio (0.8x) compared to the IN Auto industry average (2.7x).


Next Steps

Future Growth

How is Tata Motors forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

43.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATAMTRDVR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TATAMTRDVR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TATAMTRDVR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TATAMTRDVR's revenue (6.1% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: TATAMTRDVR's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TATAMTRDVR's Return on Equity is forecast to be low in 3 years time (10.3%).


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

Earnings Trend: TATAMTRDVR is unprofitable, and losses have increased over the past 5 years at a rate of -57.6% per year.

Accelerating Growth: Unable to compare TATAMTRDVR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TATAMTRDVR is unprofitable, making it difficult to compare its past year earnings growth to the Auto industry (6.4%).


Return on Equity

High ROE: TATAMTRDVR has a negative Return on Equity (-50.31%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TATAMTRDVR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TATAMTRDVR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tata Motors's financial position?


Financial Position Analysis

Short Term Liabilities: TATAMTRDVR's short term assets (₹1,234.3B) do not cover its short term liabilities (₹1,454.6B)

Long Term Liabilities: TATAMTRDVR's short term assets (1,234.3B) exceeds its long term liabilities (1,010.3B)


Debt to Equity History and Analysis

Debt Level: TATAMTRDVR's debt to equity ratio (181.6%) is considered high

Reducing Debt: TATAMTRDVR's debt to equity ratio has increased from 94.5% to 181.6% over the past 5 years.

Debt Coverage: TATAMTRDVR's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: TATAMTRDVR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: TATAMTRDVR has a high level of physical assets or inventory.

Debt Coverage by Assets: TATAMTRDVR's debt is covered by short term assets (assets are 1.119600x debt).


Next Steps

Dividend

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

0.78%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage1.4%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TATAMTRDVR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TATAMTRDVR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TATAMTRDVR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TATAMTRDVR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TATAMTRDVR is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TATAMTRDVR's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Guenter Butschek (59yo)

3.7yrs

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

Compensation vs. Market: Insufficient data to establish whether Guenter's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Guenter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TATAMTRDVR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: TATAMTRDVR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hoshang Sethna (56yo)

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹98.34m
  • Guenter Butschek (59yo)

    CEO, MD & Additional Director

    • Tenure: 3.7yrs
    • Compensation: ₹263.21m
  • Ranen Chatterjee (70yo)

    Head of Purchase

    • Tenure: 0yrs
    • Compensation: ₹3.36m
  • Tilothama Uppalapati (53yo)

    Head of Marketing Communications - CVBU

    • Tenure: 0yrs
    • Compensation: ₹2.94m
  • Petkar Rajendra (52yo)

    Chief Technology Officer

    • Tenure: 1.5yrs
  • Pathamadai Balaji (50yo)

    Group Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: ₹82.64m
  • Vijay Somaiya

    Head of Treasury & Investor Relations

    • Tenure: 0yrs
  • Vivek Srivatsa

    Head of Marketing - PVBU

    • Tenure: 3.3yrs
  • Ashmita Pillay

    Deputy General Manager of Corporate Communications

    • Tenure: 0yrs
  • G. P. Kumar

    President & Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Ratan Tata (82yo)

    Chairman Emeritus

    • Tenure: 6.8yrs
    • Compensation: ₹3.67m
  • Guenter Butschek (59yo)

    CEO, MD & Additional Director

    • Tenure: 3.7yrs
    • Compensation: ₹263.21m
  • Om Bhatt (68yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹9.82m
  • Natarajan Chandrasekaran (56yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: ₹600.00k
  • Ralf Speth (64yo)

    Non-Executive Director

    • Tenure: 8.9yrs
  • Hanne Birgitte Breinbjerg Sørensen (54yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹7.86m
  • Vedika Bhandarkar (52yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Tata Motors Limited
  • Ticker: TATAMTRDVR
  • Exchange: NSEI
  • Founded: 1945
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹425.923b
  • Shares outstanding: 3.40b
  • Website: https://www.tatamotors.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500570BSE (Mumbai Stock Exchange)YesOrdinary SharesININRAug 1998
TATAMOTORSNSEI (National Stock Exchange of India)YesOrdinary SharesININRAug 1998
TTMNYSE (New York Stock Exchange)ADR EA REP 5 ORD INR2USUSDSep 2004
TATBDB (Deutsche Boerse AG)ADR EA REP 5 ORD INR2DEEURSep 2004
TTMSWX (SIX Swiss Exchange)ADR EA REP 5 ORD INR2CHCHFSep 2004
TTM NBMV (Bolsa Mexicana de Valores)ADR EA REP 5 ORD INR2MXMXNSep 2004
TATBWBAG (Wiener Boerse AG)ADR EA REP 5 ORD INR2ATEURSep 2004
570001BSE (Mumbai Stock Exchange)A Ordinary SharesININRNov 2008
TATAMTRDVRNSEI (National Stock Exchange of India)A Ordinary SharesININRNov 2008

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 Analysis2019/10/20 12:57
End of Day Share Price2019/10/18 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.