About Company

• When we hear about Tata Motors, 1st thing that comes to our mind is the build quality & the Safety
• Now a days people are getting serious about their safety as there are only few made in India cars including Tata Motors & Mahindra these auto manufacturer makes 5 star safety rating cars.
• When we look at the Tata Cars, every car has Global NCAP (National Car Assessment Program) rating of more than 4 or 5 star not below than that.
• Indians loves Tata as a brand as it is associated with Sir Ratan Tata & this build Trust in people.
• Safety becomes the USP (Unique Selling Point) of Tata Motors
• Tata Cars Save 1 Life Every Minute in Road Accidents: Study

Company Snapshots

• Tata Motors Group is a leading global automobile manufacturer.
• It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia
• India’s 3rd largest Carmaker with a market share of 14 % in India.
• Now one in every five cars sold in India is made by Indian OEMs Tata, Mahindra

What did Tata Motors improve in last decade ?

• In 2015, everyone had a image of Tata Motors as a Taxi cars because in 2015 Ola, Uber was newly introduced in many cities in India
• These Ola & Uber drivers used to drive Tata Indica so it typically became a Taxi car
• In 2017, Tata Motors launched Nexon a 5 star safety rated car but during this time as well the Design of Nexon was not appealing & it was dull.
• After 2023, Tata Motors launched newly stunning & appealing designed  Nexon, Harrier, Punch, Safari & Electric Vehicles as well
• In simple words: Design; Tata Motors improved its design that was the turning point for Tata Motors.

Key Ratios

Market Share in India

1. Passenger Vehicles: 13.71 %
2. Commercial Vehicles: 35.49 %
3. Electric Bus: 42.2 %
4. Passenger Vehicles EV: 68.61 %
5. Pickup Truck: 39.10 %
6. Utility Vehicles: 15.10 %

Revenue Mix

• As everyone has seen the growth in passenger vehicle segment because of the newly designed cars launched
• But nobody talks about the Commercial vehicle business, it has highest market share in India
• 69% revenue contribution comes from the Jaguar Land Rover which is highest , which is hidden fact most of the India’s are not aware about this

Product Wise Break-up

• Jaguar Land Rover: 69.1%
• Commercial Vehicles: 18 %
• Passenger vehicles: 12 %
• Other (Vehicle Financing): 0.1 %

Location Wise Break-up

• India: 33 %
• USA: 15.8 %
• China: 13.7 %
• Rest of Europe: 12.4 %
• UK: 9.6 %
• Rest of the world: 15.6 %

Financial Trend

Revenue:

• Jan-20: 261,068 crore
• Jan-24: 437,928 crore
• Revenue increased by approximately 67.74% from Jan 2020 to Jan 2024.

Net Profit:

• Jan-20: -12,071 crore
• Jan-24: 31,399 crore
• Net Profit increased by approximately 360.13% from Jan 2020 to Jan 2024

Shareholding Pattern

Change In Shareholding Pattern

Promoters:

• Jun-21: 46.41%
• Mar-24: 46.36%
• Change: -0.05%
• Analysis: The promoters’ shareholding remains virtually unchanged, indicating stability in their stake.

Foreign Institutional Investors (FIIs):

• Jun-21: 14.28%
• Mar-24: 19.20%
• Change: +4.92%
• Analysis: FIIs have increased their stake significantly, showing growing foreign confidence in the company.

Domestic Institutional Investors (DIIs):

• Jun-21: 11.47%
• Mar-24: 16.01%
• Change: +4.54%
• Analysis: DIIs have also increased their holdings, indicating strong domestic institutional support.

Government:

• Jun-21: 0.15%
• Mar-24: 0.14%
• Change: -0.01%
• Analysis: Government shareholding remains almost constant, reflecting no significant policy or strategic change.

Public:

• Jun-21: 27.69%
• Mar-24: 18.31%
• Change: -9.38%
• Analysis: There is a notable decrease in public shareholding, suggesting a shift from retail investors to institutional investors.

Stock Price Returns

1 Year Returns

• In 1 year, Tata Motors stock price has given 78.09% returns to their investors
• In simple terms, if you would have invested 1 lakh in May 2023, then it would have been 1.78 lakhs in May 2024

5 Year Returns

• In 5 year, Tata Motors stock price has given 437.31% returns to their investors
• In simple terms, if you would have invested 1 lakh in May 2020, then it would have been 5.37 lakhs in May 2024

20 Year Returns

• In 23 year, Tata Motors stock price has given 2085.81 % returns to their investors
• In simple terms, if you would have invested 1 lakh in Jan 2000, then it would have been 21.85 lakhs in May 2024

Company Valuation

• Industry PE: 27.6
• Current PE: 10.7
• Median PE: 19.8 (For 5 years) 
• As the current PE is less than the Median PE & Industry PE  so we can say that the company is undervalued

A Multibagger Stock

• If you see 1 years & 5 years returns, those are impressive returns, there are very few stocks which makes your money 5X in 5 years
• If we see the last 23 years data we can see that it has given massive 2085 % returns to their investors
• Tata Motors has already proven to be the multibagger stock in the past 23 years & now Tata Motors has been consistently increasing the market share for the last 5 years
• Currently Tata Motors is the 3rd automobile company as per the market share.
• Tata Motors has impressive MaTatarket share of 68.61% in Electric vehicle segment & it will continue to dominate in the upcoming future as well.
• First time history, Tata Motors overtakes TCS as group’s most profitable firm after 10 years
• Currently the company is undervalued so this is the best time to invest in Tata Motors at the Price Level of 944.
• Tata Motors still has the potential to give multibagger returns within 5 years so stay invested.

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Tata Motors Limited.
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
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