Categories: Stock Market News

Tata Motors a multibagger stock; Should you invest ?

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

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 Cap ₹ 3,45,483 Cr.
Current Price ₹ 943
High/Low ₹ 1,066 / 516
Stock PE 10.7
Industry PE 27.6
ROCE 20.1 %
ROE 49.4 %
PEG Ratio 0.12
Debt To Equity 1.26

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

Jun-21 Mar-24 Change
Promoters + 46.41% 46.36% -0.05%
FIIs + 14.28% 19.20% 4.92%
DIIs + 11.47% 16.01% 4.54%
Government + 0.15% 0.14% -0.01%
Public + 27.69% 18.31% -9.38%

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.
  • If you have any further queries, please comment below. We will be happy to answer all your questions.
  • If you like this information, share the article with as many people as possible

Money Minded

Creating a space where investors will be able to make wise decisions where investors will get complete idea about the Fundamental Analysis of the companies which are currently in the news.

View Comments

  • Thank you for sharing superb informations. Your web-site is very cool. I'm impressed by the details that you?¦ve on this website. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my pal, ROCK! I found just the info I already searched everywhere and simply could not come across. What an ideal website.

Recent Posts

Bajaj Finance; 0% returns in 3 years; Should you invest ?

Company Snapshots Bajaj Finance is mainly engaged in the business of lending. It is one…

4 months ago

Adani Power gave 11x returns in 5 years; Should you invest ?

Company Snapshots Adani Power Limited, a subsidiary of the Adani Group. Adani Power Limited, is…

4 months ago

Adani Green turned 1 lakh into 37 lakhs; Stock down by 42%; Should you invest ?

Company Snapshots Adani Green Energy Limited (AGEL) is the renewable energy platform of Adani Portfolio.…

5 months ago

Angel One down by 45%; 7.6x returns in 5 years; Should you invest ?

Company Snapshots Angel One Ltd is a diversified financial services company, Established in 1996 It…

5 months ago

BHEL; 438% returns in 5 years; Revenue Growth 11.33%; Why not to invest ?

Company Snapshots Bharat Heavy Electricals Ltd (BHEL) is an integrated power plant equipment manufacturer, controlled…

5 months ago

Titan turned 1 lakh into 8.8 Crore; Tata Group; Should you invest ?

Company Snapshots Titan Company Ltd is among India’s most respected lifestyle companies. It was founded…

5 months ago