Tata Motors is a subsidy company of Tata Group, a global automotive manufacturing company headquartered in Mumbai, It Was founded as Tata Engineering and Locomotive Company in 1945.
In the early stages, Tata Motors initially focused on manufacturing locomotives and engaged in railway contracts.
In 1954 Tata Motors formed a joint venture with Daimler Benz of Germany to manufacture commercial vehicles in India.
In 1991 Tata Motors entered the Passenger car market with the launch of the Tata Sierra sports utility vehicle to gain market presence.
The biggest breakout for the company came in 1998 with the launch of the Tata Indica, Indica’s success helped Tata Motors establish a strong presence in the passenger car segment.
Business Areas and Products of Tata Motors
Tata Motors is engaged in the manufacture of cars utility vehicles pickups trucks and buses, the company also engaged in the manufacturing of e-vehicles recently.
Products of Tata Motors
Cars and Sports Utility Vehicles
Trucks and Buses
Defense Vehicles
E-Vehicles
Competitors of Tata Motors
Major competitors of Tata Motors are
Ashok Leyland
Olectra greentech
Force Motors
SML Isuzu
Fundamentals of Tata Motors
| Sector | Automobiles |
| Market Cap | ₹ 3,72,910.32 Cr. |
| P/E Ratio | 36.72 |
| P/B Ratio | 11.6 |
| Dividend Yield | 0.54 % |
| Book Value (TTM) | ₹ 96.69 |
| Cash | ₹ 5,150.96 Cr. |
| Debt | ₹ 13,771.04 Cr. |
| Promoter Holding | 46.36 % |
| EPS (TTM) | ₹ 30.55 |
| Sales Growth | 11.48 % |
| ROE | 30.12 % |
| ROCE | 22.42 % |
| Profit Growth | 189.65 % |
Fundamental Analysis of Tata Motors
Sales Growth
over the last 3 years sales growth is 34.43% and for the last year is 11.48%. The sales have shown a study growth over the past 3 years with a significant jump in the one year.
Profit Growth
The profit growth of the company over the last three years is 74.34% and for the last year is 189.65%, which shows the profit growth has been robust, particularly in the last year, indicating improved profitability and possibly effective cost management from the company.
Return on Equity
For the last 3 years the ROE of the company has been 11.36% and for the last year is 30.12%. which shows improvement significantly over time, with a notable recovery from the negative values in the last 5 years period to a strong positive value in the last year.
Return on Capital Employed
Over the last three years ROCE is 10.46% and for the last year is 22.4% which indicates return on capital employed has consistently improved, suggesting that the company is using its capital more effectively to generate profits.
Debt to Equity Ratio
The debt to equity ratio of the company is 0.46% indicating that the company has a balanced approach towards leverageing, with a moderate debt level relative to equity.
Price to Cash Flow
The price to cash flow of the company is 43.05% which indicates that the stock is potentially overvalued or the investors are expecting high future growth.
Interest Coverage Ratio
The Interest Coverage ratio of the company is 5.60 which indicates that the company is generating enough earnings to cover its interest expenses, which shows the financial stability of the company.
The Balance Sheet Analysis of Tata Motors
Share capital
The share capital has remained relatively stable over the years, with the slide increase from 719.54 Cr. in March 2020 to 766.5 0 Cr. in March 2024.
Total Reserves
Tata Motors’ total reserve has been studied increasing from 17668.11 Cr. in March 2020 to a significant 293676.55 Cr. forecast for March 2024. This growth in Reserves indicates the companies ability to retain earnings and reinvest them into the business.
Borrowings
The company is reducing it’s borrowing from 16326.77 Cr. in March 2020 to 523 5.67 Cr. in March 2024. which indicate the company focus on delivery and improving its balance sheet.
Current Liabilities
The current liability has remained relatively stable with a light increase from 25810.82 Cr. in March 2020 to 27326.16 Cr. in March 2024.
Current Assets
The current assets of the company have shown a growth from 13377.69 Cr. in March 2020 to 15171.06 Cr. in March 2024, indicating improved liquidity.
Total Assets
The total Assets of the company have increased from 62,589.87 to ₹64,525.09 Cr.in March 2020 to March 2024, which indicates balanced growth.
Share Holding Pattern of Tata Motors
· Promoters: 46.36%
· Public: 19.39%
· Foreign Institutional Investors (FII): 18.18%
· Domestic Institutional Investors (DII): 16.07%
The promoters hold 46.36% of the company which indicates a strong control from the promoters over the company.
FII and DII holding balanced at 18.18% and 16.07 percent respectively, which indicates a significant interest from both foreign and domestic institution investors.
The public shareholding in the company is 19.39%, which indicates that the public is also interested in the company.
Ace Investor of Tata Motors
Mr. Rakesh Jhunjhunwala holds 4754.79 Cr. shares in Tata Motors Company.
Dividend History of Tata Motors
| Ex Date | Record Date | Dividend % | Amount (₹ per share) | Type |
| 11 Jun 2024 | 11 Jun 2024 | 150% | 3 | Final |
| 11 Jun 2024 | 11 Jun 2024 | 150% | 3 | Special |
| 28 Jul 2023 | 29 Jul 2023 | 100% | 2 | Final |
| 18 Jul 2016 | 20 Jul 2016 | 10% | 0.2 | Final |
Tata Motors has consistently paid dividends to its investors, with notable increases in both dividend percentage and amount per share over the recent years.
The company A final dividend of rupees 3 along with a special dividend of 3 rupees per share in 2024 which shows a strong financial position of the company.
Tata Motors Share Price Targets
| Year | Minimum | Maximum |
| 2024 | 825 | 1340 |
| 2025 | 1172 | 1846 |
| 2030 | 2134 | 2933 |
Tata Motors Share Price Target for 2024
In the recent volatile market, Tata Motors gives massive returns to its investors. As per Tradingview the Tata Motors share price target for 2024 will be a minimum of 825 and the maximum will be 1340.
| Year | Minimum | Miximum |
| 2024 | 825 | 1340 |
Tata Motors Share Price Target for 2025
Tata Motors’ sales growth for the last year is 11.48% and for the last 3 years is 34.43% which indicates that the company is improving its sales as per our analysis the Tata Motors share price target for 2025 will be a minimum of 1172 and the maximum will be 1846.
| Year | Minimum | Maximum |
| 2025 | 1172 | 1846 |
Tata Motors share price target for 2030
As per India Brand Equity Foundation, India’s electric vehicle sector is experiencing Rapid sales growth to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two-wheelers and three-wheelers by the year 2030. which will boost the company’s future growth. so as per our analysis, Tata Motors’ share price target for 2030 will be a minimum of 2134 and a maximum of 2933.
| Year | Minimum | Maximum |
| 2030 | 2134 | 2933 |
Final words
Tata Motor is fundamentally a strong company with stable growth, healthy finances, and strong management. The company is also engaged in the electric vehicle manufacturing sector which is the future of the company so based on our analysis the company is good for long-term investment. This is not buy and sale otherwise from us. This is only for information purposes. Before investing check the market condition sector performance and take expert advice before investment. If you have any queries comment below.
Read more: Motilal Oswal Financial Services Ltd. Share Price Target
FAQ:
What is Tata Motors Share Price Target for 2024?
In the recent volatile market, Tata Motors gives massive returns to its investors. As per Tradingview the Tata Motors share price target for 2024 will be a minimum of 825 and the maximum will be 1340.
What is Tata Motors Share Price Target for 2025?
Tata Motors’ sales growth for the last year is 11.48% and for the last 3 years is 34.43% which indicates that the company is improving its sales as per our analysis the Tata Motors share price target for 2025 will be a minimum of 1172 and the maximum will be 1846.
What is Tata Motors Share Price Target for 2030?
As per India Brand Equity Foundation, India’s electric vehicle sector is experiencing Rapid sales growth to 30% in private cars, 70% in commercial vehicles, 40% in buses, and 80% in two-wheelers and three-wheelers by the year 2030. which will boost the company’s future growth. so as per our analysis, Tata Motors’ share price target for 2030 will be a minimum of 2134 and a maximum of 2933.
