Company Introduction
Headquarters Location: Mumbai, India
Core Business: Tata Motors is an Indian multinational automotive manufacturing company that designs, manufactures, and sells vehicles, including passenger cars, trucks, buses, and defense vehicles.
Overview
₹ 698
9.81
71
₹ 257,039 Cr
Company Overview
Industry Sector: Automotive
Industry Trends
Industry Growth: The Indian automotive industry is expected to grow at a CAGR of 8-10% from 2022 to 2025, driven by increasing demand for passenger vehicles and commercial vehicles.
Key Demand Drivers: Government initiatives to promote electric vehicles, rising income levels, and urbanization.
CAGR: 8
Major Competitors: Mahindra & Mahindra, Maruti Suzuki, Hyundai Motor India, and Toyota Kirloskar Motor
Financials
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 273,046 | 269,693 | 291,550 | 301,938 | 261,068 | 249,795 | 278,454 | 345,967 | 434,016 | 439,695 |
| YoY % | -1.2% | +8.1% | +3.6% | -13.5% | -4.3% | +11.5% | +24.2% | +25.5% | +1.3% | |
| EBITDA | 55,106 | 47,494 | 53,012 | 48,255 | 39,412 | 55,834 | 49,556 | 56,676 | 85,063 | 78,472 |
| YoY % | -13.8% | +11.6% | -9.0% | -18.3% | +41.7% | -11.2% | +14.4% | +50.1% | -7.7% | |
| Net Profit | 11,678 | 7,557 | 9,091 | -28,724 | -11,975 | -13,395 | -11,309 | 2,690 | 31,807 | 28,149 |
| YoY % | -35.3% | +20.3% | -416.0% | +58.3% | -11.9% | +15.6% | +123.8% | +1,082.4% | -11.5% | |
| EPS | 40.11 | 25.82 | 31.13 | -99.84 | -39.08 | -40.51 | -34.46 | 7.27 | 94.47 | 75.60 |
| YoY % | -35.6% | +20.6% | -420.7% | +60.9% | -3.7% | +14.9% | +121.1% | +1,199.4% | -20.0% |
Growth Drivers
Historical Growth Drivers: Tata Motors' growth has been driven by the success of its Jaguar and Land Rover brands, as well as its increasing market share in the Indian commercial vehicle segment.
Future Growth Drivers: The company's focus on electric vehicles, with plans to launch 10 new EV models by 2025, and its strategic partnerships, such as the one with Volkswagen Group, are expected to drive future growth.
Numbers: Tata Motors aims to achieve 25% of its sales from electric vehicles by 2025, and has set a target of selling 1 million EVs by 2030.
Market Position
Competitive Position: Tata Motors is the third-largest player in the Indian automotive industry, with a market share of around 12%.
Estimated Market Share: 12
Technological Moat: The company has a strong focus on research and development, with a network of R&D centers and partnerships with technology companies, which helps it to stay ahead of the competition in terms of technology and innovation.
Strengths
- Diversified portfolio
- Strong R&D capabilities
- Increasing market share in India
- Growing presence in electric vehicles
Weaknesses
- Dependence on Jaguar Land Rover
- Competition from established players
- Regulatory risks
- Cyclical nature of the industry
Valuations
Valuations for TATAMOTORS
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 1,274 | ₹ 1,274 | ₹ 1,033 | 45.2% |
| Peter Lynch | – | ₹ 552 | – | -26.5% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Balanced Analysis: Tata Motors is well-positioned to benefit from the growing demand for electric vehicles and its increasing market share in the Indian commercial vehicle segment. However, the company faces risks such as dependence on Jaguar Land Rover, competition from established players, and regulatory risks.
Opportunities: The company's focus on electric vehicles and its strategic partnerships are expected to drive future growth.
Risks: The cyclical nature of the industry and regulatory risks are potential headwinds for the company.
Horizon: 3-5 years
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 379.65 | 470.40 | 339.15 | 187.35 | 67.95 | 307.75 | 441.15 | 424.25 | 992.25 | 671.85 |
| YoY % | +23.9% | -27.9% | -44.8% | -63.7% | +352.9% | +43.3% | -3.8% | +133.9% | -32.3% |
Stock 3 Year Rolling CAGR
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2.21% | 3.84% | -3.61% | -6.12% | 2.17% | 11.47% | 15.94% | 8.32% | 4.28% |
| EBITDA | -1.28% | 0.53% | -9.41% | 4.98% | 7.93% | 0.50% | 19.73% | 11.46% | 4.31% |
| Net Profit | -8.01% | – | – | – | – | – | – | 118.73% | 55.36% |
| EPS | -8.10% | – | – | – | – | – | – | 118.27% | 55.09% |
| Price | -3.69% | -26.43% | -41.49% | 17.99% | 86.55% | 11.29% | 31.02% | 16.56% | 11.48% |
