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Tata Motors is a prominent company in the Passenger Cars & Utility Vehicles sector, with the stock ticker TATAMOTORS. The company boasts a market capitalization of Rs. 238,647 Crores, indicating its significant presence in the automotive industry.
Tata Motors Limited is engaged in the design, development, manufacture, and sale of a wide range of automotive vehicles. Their offerings include:
In addition to vehicles, the company manufactures engines for industrial applications, axles and transmissions for commercial vehicles, and factory automation equipment. They also provide information technology services and vehicle financing.
Tata Motors operates under several well-known brands, including Tata, Daewoo, Harrier, Safari, Fiat, Nexon, Altroz, Punch, Tiago, Tigor, Jaguar, and Land Rover. Its operations span across India, China, the United States, the United Kingdom, and other international markets. The company serves various segments, including fleet owners, transporters, government agencies, defense sectors, public transport utilities, small and medium enterprises (SMEs), agriculture, rural markets, mining, and construction industries.
Founded in 1945, Tata Motors is headquartered in Mumbai, India. The company's trailing 12-month revenue stands at Rs. 449,450.2 Crores.
In terms of investor engagement, Tata Motors distributes dividends, offering a yield of 1.07% per year, with the last year's dividend being Rs. 8 per share. However, the company has diluted shareholder holdings in the past, with a 10.9% dilution over the last three years. Interestingly, during the same period, Tata Motors achieved a substantial 54.2% revenue growth.
Summary of Tata Motors's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Tata Motors' management remains cautiously optimistic. For JLR, FY25 guidance is maintained with a focus on achieving a 10% EBIT margin in Q4, supported by retail growth and cost initiatives. New launches (Range Rover Electric, Jaguar models) aim to boost demand despite challenges in China and emissions regulations.
Commercial Vehicles (CV) anticipate a stronger Q4 with improved utilization and infrastructure spending. Market share gains in trucks/buses and new EV/CNG products (Ace EV, hydrogen trucks) are priorities. SCV segment competitiveness is being addressed through product offensives.
Passenger Vehicles (PV) expect growth via new launches (Curvv, Sierra, Harrier EV) and reduced dealer inventory. EV leadership (~53% share) continues despite fleet segment weakness; margins benefit from PLI incentives and cost savings.
Corporate Actions:
Key Risks:
Major Highlights:
Last updated: Feb 25
Question 1: For JLR FY25 revenue and ROCE targets, ROCE targets have been cut. Can you indicate the reasons? Can you also talk of demand expectation for FY26? How much would inventory levels at dealers be? Will depreciation continue at reduced levels?
Answer: ROCE cuts were due to lower China sales impacting revenue. FY26 demand is cautiously optimistic, except in China. JLR prioritizes healthy dealer inventory levels in China to stabilize margins. Depreciation will remain stable until BEV launches in late FY26.
Question 2: India PVs: We hoped for market share gains with Curvv. What volume growth is expected next year for Tata Motors and the industry?
Answer: Curvv's full potential will unfold as variants launch and awareness grows. Industry growth in FY25 is ~2%; FY26 could rebound to 6"“7% with macroeconomic improvements.
Question 3: PV/EV margins improved sharply excluding PLI. What drove this, and what are sustainable EV margins? Why is PLI as a % of EV sales low?
Answer: Improved EV margins stem from mix (Curvv), localization gains, and battery cost reductions. PLI funds $800M of the $2B EV investment plan; margins ex-PLI are breakeven, with PLI covering capex.
Question 4: JLR's FY26 EBIT target: How will you achieve 10%+ margins amid weak demand/pricing?
Answer: FY25 Q4 EBIT will exceed 10%, aided by D&A benefits. FY26 will focus on cost reductions (VME, warranty), Range Rover BEV sales, and disciplined capital allocation.
Question 5: Rising EV competition in India: How will Tata Motors maintain growth?
Answer: Tata's wide EV portfolio (Rs.8"“22 lakh), rural focus, proven reliability (5B km covered), and charging ecosystem (18,000 chargers) position it to benefit from market expansion.
Question 6: JLR's VME and warranty outlook after Q3 challenges.
Answer: VME may rise slightly due to competition; warranty costs peaked in Q3 and should decline with quality improvements.
Question 7: JLR's ASP decline despite better mix: China impact?
Answer: ASP dip (~2% QoQ) reflects China mix and FX, but YTD ASPs are marginally up. No material pricing concern.
Question 8: JLR's emission cost trajectory and regulatory risks.
Answer: Emission costs may rise in the US/UK if regulations tighten. JLR is engaging governments to align policies with BEV adoption realities.
Question 9: SCV segment competition: Tata Motors' strategy.
Answer: Addressing lower tonnage SCVs with new Ace Pro (multi-fuel options) and expanding Intra pickup range via rural networks and marketing.
Question 10: PLI eligibility for EVs: What % of revenue is PLI?
Answer: PLI is 13% of eligible EV revenue (Tiago/Tigor registered). Punch and Nexon EV approvals pending; no vendor claims yet.
Question 11: Europe premium demand recovery and Jaguar's addressable market.
Answer: Europe shows green shoots. New Jaguar targets niche luxury segments (wealthier, younger buyers), not volume share.
Question 12: Charging infrastructure's role in India's EV growth.
Answer: Charging expansion (OMCs, startups, OEMs) and government subsidies (Rs.2,000cr) will accelerate. Tata collaborates on highway-focused networks.
Question 13: India CV demand outlook for FY25/26.
Answer: FY25 M&HCV demand down 13% YTD but improving utilization. FY26 recovery expected with infra spending and sectoral growth (steel, cement).
Question 14: North America JLR retail surge: Pre-tariff stockpiling?
Answer: 25% YTD US growth reflects strong Range Rover/Defender demand, not tariff moves. Q3 benefited from homologation timing.
Question 15: Bus segment strategy and market share.
Answer: Tata leads with 38% share via multi-fuel options (diesel/CNG/electric). Focus on retail MCV (intercity) and institutional tenders.
Question 16: CV financing stress levels.
Answer: SCV/M&HCV stress eased with improved utilization and selective financing. Buses show recovery due to higher usage.
Question 17: Impact of slower electrification on JLR Capex.
Answer: Prolonged ICE/BEV coexistence strains investment. JLR extends flexible architectures (e.g., EMA) but faces higher near-term costs.
Balance Sheet: Reasonably good balance sheet.
Size: It is among the top 200 market size companies of india.
Momentum: Stock is suffering a negative price momentum. Stock is down -7.5% in last 30 days.
Dilution: Company has a tendency to dilute it's stock investors.
Smart Money: Smart money looks to be reducing their stake in the stock.
Comprehensive comparison against sector averages
TATAMOTORS metrics compared to Automobiles
| Category | TATAMOTORS | Automobiles |
|---|---|---|
| PE | 7.48 | 19.83 |
| PS | 0.54 | 1.69 |
| Growth | 4.5 % | 4.9 % |
TATAMOTORS vs Automobiles (2021 - 2025)
Understand Tata Motors ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Tata Sons Private Limited | 40.16% |
| SBI Nifty 50 Etf | 2.82% |
| Tata Industries Limited | 1.96% |
| HDFC Trustee Company Ltd. A/C Hdfc Large Cap Fund | 1.38% |
| Tata Investment Corporation Limited | 0.3% |
| Ewart Investments Limited | 0.09% |
| Tata Chemicals Limited | 0.05% |
| The Tata Power Company Limited | 0.01% |
| Tata Consumer Products Limited | 0% |
| Sir Ratan Tata Trust-V Singh, VSrinivasan, M Mistry,JNTata,DKhambata, NNTata, JehangirHC | 0% |
| Sir Dorabji Tata Trust-VSingh, VSrinivasan, NNTata, MehliMistry, PramitJhaveri, DariusKhambata | 0% |
| J R D Tata Trust - Mr V Srinivasan, Mr V Singh | 0% |
| Lady Tata Memorial Trust - Mr. F.K. Kavarana, Dr. P.B. Desai, Dr. M. Chandy | 0% |
| Simto Investment Company Limited | 0% |
| Tata Steel Limited | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Tata Motors's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| - Jaguar and Land Rover | 70.9% | 81.3 kCr |
| (a) Commercial Vehicle | 16.1% | 18.4 kCr |
| (b) Passenger Vehicle | 10.8% | 12.4 kCr |
| Others | 1.3% | 1.5 kCr |
| - Vehicle Financing | 0.9% | 991 Cr |
| Total | 1.1 LCr |
Investor Care | |
|---|---|
| Dividend Yield | 1.07% |
| Dividend/Share (TTM) | 8 |
| Shares Dilution (1Y) | 10.78% |
| Diluted EPS (TTM) | 84.37 |
Financial Health | |
|---|---|
| Current Ratio | 0.94 |
| Debt/Equity | 0.89 |
| Debt/Cashflow | 0.69 |
Updated Apr 28, 2025
Tata Motors shares have been affected by rising tensions with Pakistan and disappointing earnings, leading to a decline of 2.01%.
The closure of BluSmart has left Tata Motors with over 7,500 undelivered vehicles, raising concerns about the viability of electric vehicles in fleet operations.
Tata Motors shares have dropped significantly, currently sitting 46% below their 52-week high, indicating ongoing market challenges.
Tata Motors and Tata Power Renewable Energy have partnered to develop a 131MW wind-solar hybrid renewable energy project, supporting sustainable manufacturing and net-zero emissions goals.
Tata Motors saw a 1.26% gain on a day that overall markets were declining, indicating continued investor interest despite broader negative trends.
Increased retail investor interest has been noted, with retail shareholding rising from 16.83% to 17.35% despite challenges.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Valuation | |
|---|---|
| Market Cap | 2.41 LCr |
| Price/Earnings (Trailing) | 7.48 |
| Price/Sales (Trailing) | 0.54 |
| EV/EBITDA | 3.74 |
| Price/Free Cashflow | 5.27 |
| MarketCap/EBT | 7.72 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 4.49 LCr |
| Rev. Growth (Yr) | 2.93% |
| Rev. Growth (Qtr) | 11.99% |
| Earnings (TTM) | 32.25 kCr |
| Earnings Growth (Yr) | -21.94% |
| Earnings Growth (Qtr) | 61.68% |
Profitability | |
|---|---|
| Operating Margin | 6.97% |
| EBT Margin | 6.96% |
| Return on Equity | 29.52% |
| Return on Assets | 8.25% |
| Free Cashflow Yield | 18.99% |
Detailed comparison of Tata Motors against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| MARUTI | Maruti Suzuki IndiaPassenger Cars & Utility Vehicles | 3.66 LCr | 1.55 LCr | -0.68% | -9.81% | 25.2 | 2.36 | +12.10% | +19.51% |
| M&M | Mahindra & MahindraPassenger Cars & Utility Vehicles | 3.56 LCr | 1.54 LCr | +4.45% | +36.60% | 26.08 | 2.31 | +11.21% | +12.46% |
| BAJAJ-AUTO | Bajaj Auto2/3 Wheelers | 2.24 LCr | 51.35 kCr | +0.76% | -8.02% | 29.78 | 4.37 | +17.81% | +1.79% |
| EICHERMOT | Eicher Motors2/3 Wheelers | 1.53 LCr | 19.11 kCr | +3.19% | +20.81% | 34.4 | 8 | +12.04% | +15.81% |
| ASHOKLEY | Ashok LeylandCommercial Vehicles | 66.12 kCr | 47.69 kCr | +4.73% | +26.70% | 21.53 | 1.39 | +4.69% | +19.69% |