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Tata Motors

NSEI:TATAMTRDVR
Snowflake Description

Very undervalued with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TATAMTRDVR
NSEI
₹520B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

Tata Motors Limited designs, manufactures, and sells a range of automotive vehicles. The last earnings update was 27 days ago. More info.


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  • Tata Motors has significant price volatility in the past 3 months.
TATAMTRDVR Share Price and Events
7 Day Returns
-1.3%
NSEI:TATAMTRDVR
-2.5%
IN Auto
-1.3%
IN Market
1 Year Returns
-55.3%
NSEI:TATAMTRDVR
-26%
IN Auto
-1.6%
IN Market
TATAMTRDVR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tata Motors (TATAMTRDVR) -1.3% -3.1% -11.1% -55.3% -74.2% -74.6%
IN Auto -2.5% 1.6% -6% -26% -0.6% 31.5%
IN Market -1.3% 4.7% 0.7% -1.6% 32.8% 41.8%
1 Year Return vs Industry and Market
  • TATAMTRDVR underperformed the Auto industry which returned -26% over the past year.
  • TATAMTRDVR underperformed the Market in India which returned -1.6% over the past year.
Price Volatility
TATAMTRDVR
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tata Motors to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tata Motors.

NSEI:TATAMTRDVR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.3%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:TATAMTRDVR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.564 (1 + (1- 35%) (175.14%))
1.138
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.138 * 8.6%)
17.34%

Discounted Cash Flow Calculation for NSEI:TATAMTRDVR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tata Motors is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:TATAMTRDVR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.34%)
2019 -317,242.53 Analyst x14 -270,359.68
2020 -34,572.48 Analyst x14 -25,109.12
2021 -6,230.10 Analyst x13 -3,856.08
2022 177,119.00 Analyst x1 93,425.88
2023 321,194.49 Est @ 81.34% 144,384.52
2024 511,360.00 Est @ 59.21% 195,897.92
2025 734,870.38 Est @ 43.71% 239,918.82
2026 976,358.38 Est @ 32.86% 271,652.27
2027 1,223,063.76 Est @ 25.27% 290,003.80
2028 1,467,096.04 Est @ 19.95% 296,458.32
Present value of next 10 years cash flows ₹1,232,416.65
NSEI:TATAMTRDVR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹1,467,096.04 × (1 + 7.55%) ÷ (17.34% – 7.55%)
₹16,115,561.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹16,115,561.81 ÷ (1 + 17.34%)10
₹3,256,496.05
NSEI:TATAMTRDVR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹1,232,416.65 + ₹3,256,496.05
₹4,488,912.70
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹4,488,912.70 / 3,464.82
₹1295.57
NSEI:TATAMTRDVR Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:TATAMTRDVR represents 0.49116x of BSE:500570
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.49116x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 1,295.57 x 0.49116
₹636.34
Value per share (INR) From above. ₹636.34
Current discount Discount to share price of ₹80.60
= -1 x (₹80.60 - ₹636.34) / ₹636.34
87.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Tata Motors is available for.
Intrinsic value
>50%
Share price is ₹80.6 vs Future cash flow value of ₹636.34
Current Discount Checks
For Tata Motors to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tata Motors's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tata Motors's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:TATAMTRDVR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹26.47
BSE:500570 Share Price ** BSE (2019-06-14) in INR ₹164.1
India Auto Industry PE Ratio Median Figure of 10 Publicly-Listed Auto Companies 16.18x
India Market PE Ratio Median Figure of 2,824 Publicly-Listed Companies 15.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tata Motors.

NSEI:TATAMTRDVR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500570 Share Price ÷ EPS (both in INR)

= 164.1 ÷ 26.47

6.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Motors is good value based on earnings compared to the IN Auto industry average.
  • Tata Motors is good value based on earnings compared to the India market.
Price based on expected Growth
Does Tata Motors's expected growth come at a high price?
Raw Data
NSEI:TATAMTRDVR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
117.2%per year
India Auto Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Companies 2.27x
India Market PEG Ratio Median Figure of 521 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:TATAMTRDVR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.2x ÷ 117.2%

0.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Motors is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Tata Motors's assets?
Raw Data
NSEI:TATAMTRDVR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹281.01
BSE:500570 Share Price * BSE (2019-06-14) in INR ₹164.1
India Auto Industry PB Ratio Median Figure of 12 Publicly-Listed Auto Companies 2.85x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 1x
NSEI:TATAMTRDVR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500570 Share Price ÷ Book Value per Share (both in INR)

= 164.1 ÷ 281.01

0.58x

* Primary Listing of Tata Motors.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Motors is good value based on assets compared to the IN Auto industry average.
X
Value checks
We assess Tata Motors's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. Tata Motors has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
117.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tata Motors expected to grow at an attractive rate?
  • Tata Motors's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Tata Motors's earnings growth is expected to exceed the India market average.
  • Tata Motors's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:TATAMTRDVR Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TATAMTRDVR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 117.2%
NSEI:TATAMTRDVR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 6.9%
India Auto Industry Earnings Growth Rate Market Cap Weighted Average 18.1%
India Auto Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
India Market Earnings Growth Rate Market Cap Weighted Average 16.6%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:TATAMTRDVR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TATAMTRDVR Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 3,776,722 517,456 126,283 3
2021-03-31 3,474,974 383,953 84,194 30
2020-03-31 3,230,138 346,763 74,786 1
NSEI:TATAMTRDVR Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 3,019,384 -288,262
2018-12-31 3,081,841 -278,185
2018-09-30 3,045,491 3,727
2018-06-30 3,028,305 39,043
2018-03-31 2,942,426 238,574 89,889
2017-12-31 2,740,343 98,262
2017-09-30 2,648,210 87,214
2017-06-30 2,591,381 70,669
2017-03-31 2,698,497 301,993 74,544
2016-12-31 2,823,840 77,788
2016-09-30 2,854,315 106,191
2016-06-30 2,815,167 80,291

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tata Motors's earnings are expected to grow significantly at over 20% yearly.
  • Tata Motors's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TATAMTRDVR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from Tata Motors Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TATAMTRDVR Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 37.19 44.64 29.40 3.00
2021-03-31 24.43 39.50 11.50 27.00
2020-03-31 18.02 22.30 13.80 21.00
NSEI:TATAMTRDVR Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31
2018-12-31
2018-09-30
2018-06-30
2018-03-31 26.47
2017-12-31
2017-09-30
2017-06-30
2017-03-31 21.95
2016-12-31
2016-09-30
2016-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tata Motors is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tata Motors's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tata Motors has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tata Motors performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tata Motors's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Tata Motors's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tata Motors Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TATAMTRDVR Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,019,384.00 -288,262.30 332,438.70 42,245.70
2018-12-31 3,081,840.90 -278,184.70 425,653.70 41,824.10
2018-09-30 3,045,491.30 3,727.00 416,326.90 39,734.10
2018-06-30 3,028,304.90 39,042.80 406,766.70 36,699.60
2018-03-31 2,942,425.70 89,889.10 392,686.80 35,318.70
2017-12-31 2,740,342.50 98,262.10 376,997.60 738.90
2017-09-30 2,648,209.60 87,213.50 371,681.30 -356.30
2017-06-30 2,591,381.40 70,669.30 367,056.50 -587.00
2017-03-31 2,698,496.60 74,543.60 370,315.70 34,135.70
2016-12-31 2,823,840.20 77,788.10 389,820.70 35,055.60
2016-09-30 2,854,315.10 106,190.90 393,127.00 35,449.90
2016-06-30 2,815,166.80 80,291.00 394,173.30 36,460.90
2016-03-31 2,705,112.60 95,883.40 375,579.00
2015-12-31 2,622,917.70 75,631.90 455,395.70 32,189.20
2015-09-30 2,602,473.20 76,363.70 448,138.00 30,844.40
2015-06-30 2,591,330.20 113,569.90 440,334.10 29,833.80
2015-03-31 2,648,928.60 128,291.20 336,174.10
2014-12-31 2,583,593.90 161,880.80 417,087.90 28,397.60
2014-09-30 2,521,017.30 174,121.60 407,947.50 27,343.80
2014-06-30 2,474,912.90 176,631.60 385,984.90 26,291.00
2014-03-31 2,328,336.60 139,910.20 372,487.60 25,652.10
2013-12-31 2,195,134.10 140,182.00 432,694.80 23,165.60
2013-09-30 2,021,723.30 108,409.00 377,314.50 21,864.00
2013-06-30 1,896,034.50 93,737.70 292,732.20 20,760.10
2013-03-31 1,860,126.70 98,926.10 285,901.10 20,215.90
2012-12-31 1,811,588.70 121,811.40 252,838.40 19,282.60
2012-09-30 1,805,368.50 139,591.90 241,381.50 18,374.70
2012-06-30 1,736,564.20 137,617.90 229,846.60 16,430.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess Tata Motors's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tata Motors has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tata Motors's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tata Motors's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Tata Motors's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tata Motors Company Filings, last reported 2 months ago.

NSEI:TATAMTRDVR Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 607,026.20 911,239.30 448,007.10
2018-12-31 956,391.20 929,232.00 355,668.30
2018-09-30 956,391.20 929,232.00 355,668.30
2018-06-30 959,529.70 933,740.50 486,569.90
2018-03-31 959,529.70 933,740.50 486,569.90
2017-12-31 796,442.70 764,268.00 429,919.00
2017-09-30 796,442.70 764,268.00 429,919.00
2017-06-30 538,842.20 814,216.40 509,206.70
2017-03-31 585,150.60 814,323.60 508,020.30
2016-12-31 551,249.10 690,396.90 424,478.50
2016-09-30 551,249.10 690,396.90 424,478.50
2016-06-30 816,709.30 730,189.30 520,979.20
2016-03-31 768,036.70 719,134.80 491,675.50
2015-12-31 813,617.20 661,503.90 357,988.40
2015-09-30 813,617.20 661,503.90 357,988.40
2015-06-30 566,952.60 754,309.90 462,170.00
2015-03-31 566,952.60 754,309.90 462,170.00
2014-12-31 692,560.70 746,769.50 458,249.90
2014-09-30 682,550.40 607,736.70 427,260.50
2014-06-30 660,241.00 624,700.20 393,215.70
2014-03-31 660,241.00 624,700.20 393,215.70
2013-12-31
2013-09-30 556,668.70 551,926.50 316,915.80
2013-06-30 380,077.80 552,170.90 286,571.40
2013-03-31 380,077.80 552,170.90 286,571.40
2012-12-31 407,028.60 417,244.80 237,051.90
2012-09-30 407,028.60 417,244.80 237,051.90
2012-06-30 334,570.60 484,024.00 257,643.00
  • Tata Motors's level of debt (150.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (94.6% vs 150.1% today).
  • Debt is well covered by operating cash flow (26.2%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 0.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Tata Motors's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tata Motors has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Tata Motors dividends. Estimated to be 0.64% next year.
If you bought ₹2,000 of Tata Motors shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:TATAMTRDVR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
India Auto Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1450 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TATAMTRDVR Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.87 3.00
2021-03-31 1.04 20.00
2020-03-31 1.13 13.00
NSEI:TATAMTRDVR Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-02-05 0.000 0.000
2017-11-09 0.000 0.000
2017-08-09 0.000 0.000
2017-07-28 0.000 0.000
2017-05-23 0.000 0.000
2016-05-30 0.200 0.041
2016-02-11 0.000 0.000
2015-11-06 0.000 0.000
2015-08-07 0.000 0.000
2015-07-13 0.000 0.000
2015-05-26 0.000 0.000
2014-10-23 2.000 0.375
2014-05-29 2.000 0.421
2013-06-24 2.000 0.559
2013-05-29 2.000 0.670
2012-08-09 4.000 1.432
2012-06-13 4.000 1.721
2011-05-26 4.000 1.946
2010-07-16 3.000 1.325
2010-05-27 3.000 1.947
2009-06-26 1.200 1.035

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Tata Motors's earnings are paid to the shareholders as a dividend.
  • 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 (41.4x coverage).
X
Income/ dividend checks
We assess Tata Motors's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tata Motors afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tata Motors has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guenter Butschek
COMPENSATION ₹264,195,000
AGE 58
TENURE AS CEO 3.3 years
CEO Bio

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 international markets including South Korea, Thailand, Indonesia and South Africa. He has broad functional and general management skills and wide international experience. Mr. Butschek served as the Chief Operating Officer of Airbus S.A.S. from June 2012 to January 1, 2015. He served as Executive Vice President of Operations of Airbus S.A.S since February 1, 2011. Mr. Butschek served as the President and Chief Executive Officer of NedCar, a subsidiary of Mitsubishi Motors Corporation until June 2005. He worked at Daimler AG for more than 25 years in international automotive management, leading functions like production, industrialization and procurement and served as its President and Chief Executive Officer of Beijing Benz Automotive Co. Ltd. Mr. Butschek serves as the Chairman of the Board of Airbus Operations GmbH. He has been an Additional Director at Tata Motors Limited since February 15, 2016. He has been the Chairman of the Supervisory Board at Premium AEROTEC GmbH since April 1, 2011. Mr. Butschek serves as the Chairman of the Supervisory Board at PFW Aerospace UK Ltd. He is a Director at Tata Cummins Private Ltd., Tata Daewoo Commercial Vehicle Co. Ltd., Tata Motors European Technical Center Plc and TMF Holdings Ltd. Mr. Butschek is Director of Tata Technologies Limited since August 2018 and was its Additional Director since March 30, 2018 until August 2018. He graduated in Economics from the Baden-Wuerttemberg Cooperative State University. He is a graduate in Business Administration with a Diploma from the University of Cooperative Education, Stuttgart.

CEO Compensation
  • Guenter's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Guenter's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Tata Motors management team in years:

1.8
Average Tenure
55
Average Age
  • The average tenure for the Tata Motors management team is less than 2 years, this suggests a new team.
Management Team

Natarajan Chandrasekaran

TITLE
Non-Executive Chairman
COMPENSATION
₹780K
AGE
55

Guenter Butschek

TITLE
CEO, MD & Additional Director
COMPENSATION
₹264M
AGE
58
TENURE
3.3 yrs

Pathamadai Balaji

TITLE
Group Chief Financial Officer
COMPENSATION
₹178M
AGE
49
TENURE
1.6 yrs

Satish Borwankar

TITLE
COO & Executive Director
COMPENSATION
₹22M
AGE
66
TENURE
2 yrs

Hoshang Sethna

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹12M
AGE
55

G. P. Kumar

TITLE
President & Chief Human Resources Officer
TENURE
0.5 yrs

Petkar Rajendra

TITLE
Chief Technology Officer
AGE
51
TENURE
1.2 yrs

Vijay Somaiya

TITLE
Head of Treasury & Investor Relations

Ashmita Pillay

TITLE
Deputy General Manager of Corporate Communications

Vivek Srivatsa

TITLE
Head of Marketing - PVBU
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Tata Motors board of directors in years:

6.3
Average Tenure
61.5
Average Age
  • The tenure for the Tata Motors board of directors is about average.
Board of Directors

Natarajan Chandrasekaran

TITLE
Non-Executive Chairman
COMPENSATION
₹780K
AGE
55
TENURE
2.4 yrs

Guenter Butschek

TITLE
CEO, MD & Additional Director
COMPENSATION
₹264M
AGE
58
TENURE
3.3 yrs

Ratan Tata

TITLE
Chairman Emeritus
COMPENSATION
₹4M
AGE
81
TENURE
6.5 yrs

Satish Borwankar

TITLE
COO & Executive Director
COMPENSATION
₹22M
AGE
66
TENURE
7 yrs

Nasser Munjee

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
66
TENURE
11 yrs

Vinesh Jairath

TITLE
Non-Executive Director
COMPENSATION
₹1M
AGE
60
TENURE
10.3 yrs

Falguni Nayar

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
55
TENURE
6.1 yrs

Om Bhatt

TITLE
Non-Executive Independent Director
COMPENSATION
₹720K
AGE
67
TENURE
2.1 yrs

Hanne Sorensen

TITLE
Non-Executive Independent Director
AGE
53
TENURE
1.4 yrs

Ralf Speth

TITLE
Non-Executive Director
AGE
63
TENURE
8.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Tata Motors's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tata Motors has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Tata Motors Limited's (NSE:TATAMTRDVR) P/E Ratio Signal A Buying Opportunity?

View our latest analysis for Tata Motors How Do I Calculate Tata Motors's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Tata Motors: P/E of 6.85 = ₹181.35 ÷ ₹26.47 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … How Does Tata Motors's Debt Impact Its P/E Ratio?

Simply Wall St -

What Kind Of Shareholder Appears On The Tata Motors Limited's (NSE:TATAMTRDVR) Shareholder Register?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Tata Motors is a pretty big company. … institutions own shares in the company.

Simply Wall St -

What Does Tata Motors Limited's (NSE:TATAMTRDVR) Share Price Indicate?

received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹98.75 at one point, and dropping to the lows of ₹80.35. … A question to answer is whether Tata Motors's current trading price of ₹85.55 reflective of the actual value of the? … Let’s take a look at Tata Motors’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Those Who Purchased Tata Motors Shares Three Years Ago Have A 64% Loss To Show For It

Given that Tata Motors only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. … Many high growth companies focus on growing revenue before profits, but if revenue is the focus, it really needs to grow. … Over three years, Tata Motors grew revenue at 4.2% per year.

Simply Wall St -

Why Tata Motors Limited’s (NSE:TATAMTRDVR) Return On Capital Employed Looks Uninspiring

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Second, we'll look at its ROCE compared to similar companies. … What is Return On Capital Employed (ROCE)?

Simply Wall St -

How Many Tata Motors Limited (NSE:TATAMTRDVR) Shares Do Institutions Own?

Every investor in Tata Motors Limited (NSE:TATAMTRDVR) should be aware of the most powerful shareholder groups. … Tata Motors is a pretty big company. … View our latest analysis for Tata Motors

Simply Wall St -

Is Tata Motors Limited (NSE:TATAMTRDVR) Potentially Undervalued?

Tata Motors Limited (NSE:TATAMTRDVR), which is in the auto business, and is based in India,. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Tata Motors’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Do You Know What Tata Motors Limited's (NSE:TATAMTRDVR) P/E Ratio Means?

Tata Motors has a P/E ratio of 6.8, based on the last twelve months. … How Do I Calculate Tata Motors's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Buy Tata Motors Limited (NSE:TATAMTRDVR)?

saw significant share price volatility over the past couple of months on the NSEI, rising to the highs of ₹186.35 and falling to the lows of ₹134.5. … A question to answer is whether Tata Motors's current trading price of ₹139.2 reflective of the actual value of the? … Let’s take a look at Tata Motors’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Does Tata Motors Limited (NSE:TATAMTRDVR)'s Capital Return Make The Cut?

and looking to gauge the potential return on investment in Tata Motors Limited (NSE:TATAMTRDVR). … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

Company Info

Description

Tata Motors Limited designs, manufactures, and sells a range of automotive vehicles. It operates through Automotive Operations and All Other Operations segments. The company offers cars, sports vehicles, trucks, buses, and defence vehicles, as well as related spare parts and accessories. It also manufactures engines for industrial and marine applications; aggregates, such as axles and transmissions for commercial vehicles; and factory automation equipment. In addition, the company provides information technology services, machine tools, and factory automation services; and vehicle financing services. It offers its products under the Tata, Daewoo, Fiat, Jaguar, and Land Rover brands. Tata Motors Limited operates in India, China, the United Kingdom, the United States, rest of Europe, and internationally. The company was formerly known as Tata Engineering and Locomotive Company Limited and changed its name to Tata Motors Limited in July 2003. Tata Motors Limited was founded in 1945 and is headquartered in Mumbai, India.

Details
Name: Tata Motors Limited
TATAMTRDVR
Exchange: NSEI
Founded: 1945
₹520,300,255,685
3,464,818,694
Website: http://www.tatamotors.com
Address: Tata Motors Limited
Ahura Centre,
4th Floor,
Mumbai,
Maharashtra, 400093,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500570 Ordinary Shares Mumbai Stock Exchange IN INR 03. Aug 1998
NSEI TATAMOTORS Ordinary Shares National Stock Exchange of India IN INR 03. Aug 1998
NYSE TTM ADR EA REP 5 ORD INR2 New York Stock Exchange US USD 27. Sep 2004
BSE 570001 A Ordinary Shares Mumbai Stock Exchange IN INR 05. Nov 2008
DB TATB ADR EA REP 5 ORD INR2 Deutsche Boerse AG DE EUR 27. Sep 2004
SWX TTM ADR EA REP 5 ORD INR2 SIX Swiss Exchange CH CHF 27. Sep 2004
WBAG TATB ADR EA REP 5 ORD INR2 Wiener Boerse AG AT EUR 27. Sep 2004
NSEI TATAMTRDVR A Ordinary Shares National Stock Exchange of India IN INR 05. Nov 2008
BMV TTM N ADR EA REP 5 ORD INR2 Bolsa Mexicana de Valores MX MXN 27. Sep 2004
Number of employees
Current staff
Staff numbers
81,090
Tata Motors employees.
Industry
Automobile Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 12:53
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.