TATAMOTORS Stock analysis

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Stock analysis: TATA MOTORS LIMITED

This article is about TATA MOTORS LIMITED.
Tata Motors Limited is an Indian multinational automotive manufacturing company. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles.

Market capitalization and stock price history

TATA MOTORS LIMITED has a market capitalization of 783.824 billion, at the time of making this video.

Scroll to the end for the final verdict.

Its stock price made an all time high of rupees 598 on 27 January 2015.
market cap and stock price
In past five years, the stock price made a low of rupees 65 on 03 April 2020.
stock price variation

Stock returns

This stock gave compounded annual growth of 12 percentage over past one year, -20 percentage over past three years, and -9 percentage over past five years.
stock returns

Revenue and profits

In past 12 months, TATA MOTORS LIMITED had a revenue of rupees 3 trillion, and a gross profit of rupees 11 billion.
As compared to previous fiscal year, in the past 12 months, it has seen a revenue decline of 0.0%.
On 31/3/2020, TATA MOTORS LIMITED reported a total revenue of rupees 3 trillion, and has seen a revenue decline of -13.3% from the previous year.
The company reported an EBITDA of rupees 171 billion.
revenue

Fundamental analysis

Now let us look at some key financial ratios to guage how good or bad this stock is.
Its "beta" value, which is a measure of volatility of stock, is 2.12.
This means the stock moves with more volatility than the market. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
The price to earnings ratio information is not available for this stock.
The price to earnings ratio indicates whether the stock is undervalued or overvalued.
fundamental analysis
Now, we will compare some key financial ratios with the top 500 NSE stocks.
For this purpose, we divide the distribution of these key indicators in to four parts or "quartiles".
Quartile region is obtained by dividing all the stocks in 4 parts, so that each part contain same number of stocks.
As compared to top 500 stocks in NSE, TATA MOTORS LIMITED has its beta value in the fourth quartile.
This means the stock exhibits very high volatility.
beta
TATA MOTORS LIMITED has earnings per share of -34.88, which is higher than 2% of top 500 NSE stocks.
The earnings per share value is bad.
Earnings per share is a company's net profit divided by the number of outstanding shares. This is a wildly used metric to estimate corporate value.
EPS
market cap and stock price
The price to earnings ratio information is not available for this stock.
A high price to earnings ratio may also mean that investors are expecting high growth rates in the future.
Price to earnings ratio measures its current share price relative to its per-share earnings.
price to earnings
comparison1
TATA MOTORS LIMITED has price to book value ratio of 1.05, which is higher than 17% of top 500 NSE stocks.
The price to book value ratio is in the first quartile, this means the stock may be underrated.
The price-to-book ratio compares a company's market value to its book value. Book value is net assets of the company.
This ratio should be looked at in conjunction with return on equity ratio. A low return on equity combined with high price to book ratio means stock is overvalued.
market cap and stock price
comparison 2
TATA MOTORS LIMITED has return on equity value of -32.14%, which is higher than 3% of top 500 NSE stocks.
The return on equity for this stock is in the first quartile, which is bad.
The return on equity is calculated by taking company's net earnings after taxes, subtracting preferred dividends, and dividing by the total equity.
return on equity
comparison 3
TATA MOTORS LIMITED has debt to equity ratio of 221.71, which is higher than 77% of top 500 NSE stocks.
A debt to equity ratio is company's total liabilities divided by shareholder's equity, and lower value of this ratio is preferred.
The debt to equity ratio for this stock is in the fourth quartile, which is bad.
This ratio is a measure of the degree to which a company is financing its operations through debt versus wholly-owned funds.
A higher value of this ratio tend to indicate higher risk to the investors.
debt to equity
comparison 4
TATA MOTORS LIMITED has operating cash flow of 193 billion in the past 12 months, which is higher than 91% of top 500 NSE stocks.
The operating cash flow for this stock is in the fourth quartile, which is very good.
operating cash flow
comparison 5
TATA MOTORS LIMITED has levered free cash flow of -89 billion in the past 12 months, which is higher than 1% of top 500 NSE stocks.
The operating cash flow for this stock is in the first quartile, which is bad.
levered free cash flow
comparison 6
TATA MOTORS LIMITED has no dividend payout.
The dividend payout ratio provides an indication of how much money a company is returning to shareholders versus how much it is keeping on hand to reinvest in growth, pay off debt, or add to cash reserves.
payout ratio
comparison 3

Income Statement

EBITDA
The company reported an EBITDA of rupees 171 billion in year 2020, which is 674% more than the EBITDA from the previous year.
The information on earnings per share of this stock is not available.
EPS growth

Balance sheet

TATA MOTORS LIMITED has shown year on year increase in stockholder's equity by 6.7% in year 2020.
This stock showed year on year decrease in stockholder's equity by -39.2% in year 2019.
This stock showed year on year increase in stockholder's equity by 70.1% in year 2018.
stockholder equity

Cash flow

TATA MOTORS LIMITED has free cash flow of rupees -882 million in the past twelve months.
The free cash flow for the year 2020 was rupees -31 billion.
Cash flow

Fundamental analysis

Here you can see statistics related to number of shares.
fundamental analysis
TATA MOTORS LIMITED is at position 47 in terms of market capitalization among the nifty 50 stocks.
market cap and stock price
TATA MOTORS LIMITED is at position 5 in terms of annual revenue among the nifty 50 stocks.
market cap and stock price
TATA MOTORS LIMITED is at position 47 in terms of free cash flow among the nifty 50 stocks.
market cap and stock price
Here, we presented a very simplified assessment of fundamental indicators. We categorized the performance on each indicator by comparing it with top 500 NSE stocks.
On your side, go thoroughly through the financial data before deciding on investing in this stock.
market cap and stock price

Final verdict:

final verdict

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