As of 29 November 2023 16:47 IST, the share price of Tata Motors Ltd. is ₹46.38.
Table of Contents
About Tata Motors Ltd.
Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It is part of the Tata Group, and one of the world’s largest automobile manufacturers. It produces passenger cars, trucks, buses, and other vehicles.
Tata Motors was founded in 1945 as TELCO (Tata Engineering and Locomotive Company). It was renamed Tata Motors in 1961. The company started manufacturing passenger cars in 1988 with the launch of the Tata Sierra. In 1998, Tata Motors acquired a controlling stake in the South Korean car manufacturer Daewoo Motors. The company entered the European market in 2004 with the acquisition of Jaguar Land Rover.
Tata Motors is one of the leading automobile manufacturers in India. The company has a strong presence in the passenger car, commercial vehicle, and defense segments. It is also one of the largest exporters of automobiles from India. Tata Motors has a strong network of dealerships and service centers across India.
The company’s mission statement is “To be the most trusted and preferred automotive brand in the world.” Tata Motors’ vision statement is “To drive human mobility for a better future.”
Tata Motors is committed to sustainable development. The company has a number of initiatives in place to reduce its environmental impact. Tata Motors is also a leader in the development of electric vehicles.
Tata Motors is a well-respected company with a strong track record of success. The company is well-positioned for continued growth in the future.
Here are some of the company’s key strengths:
- Strong brand reputation
- Diversified product portfolio
- Strong presence in India
- Global reach
- Commitment to sustainability
Here are some of the company’s key challenges:
- Intense competition in the Indian automotive market
- Rising input costs
- Slowdown in the global economy
- Regulatory challenges
Tata Motors Ltd. Fundamental
| Financial | Value |
|---|---|
| Market Cap (Rs) | 3,14,914 Cr |
| Total Revenue (Rs) | 3,23,348 Cr |
| Total Profit (Rs) | 19,203 Cr |
| Earnings Per Share (EPS) (Rs) | 13.15 |
| Price to Earnings Ratio (P/E) | 14.76 |
| Debt to Equity Ratio (D/E) | 1.76 |
| Return on Equity (ROE) | 13.24% |
| Dividend Yield | 0.29% |
| Industry | Value |
|---|---|
| Market Share (India) | 23.5% |
| Production Capacity (Vehicles/Year) | 2.4 million |
| Number of Employees | 85,000 |
| Number of Dealerships | 6,000 |
| Number of Service Centers | 3,000 |
| Products | Value |
|---|---|
| Passenger Cars | Tata Indica, Tata Tiago, Tata Tigor, Tata Nexon, Tata Harrier |
| Commercial Vehicles | Tata Ace, Tata Intra, Tata Yodha, Tata Signa, Tata Super Truck |
| Jaguar Land Rover | Jaguar F-PACE, Jaguar XE, Range Rover Sport, Range Rover Evoque |
| Financials (Year 2022-2023) | Value |
|---|---|
| Revenue Growth | 12% |
| Profit Growth | 25% |
| Dividend Growth | 10% |
| Future Outlook | Value |
|---|---|
| Focus on electric vehicles | Tata Motors is investing heavily in the development of electric vehicles. The company plans to launch a range of electric vehicles in the coming years. |
| Expansion into new markets | Tata Motors is expanding into new markets such as North America and Europe. The company is also investing in building new manufacturing plants in these markets. |
| Strong brand reputation | Tata Motors is a well-respected brand with a strong reputation for quality and reliability. This will give the company an advantage in the competitive automotive market. |
| Challenges | Value |
|---|---|
| Intense competition | The Indian automotive market is highly competitive. Tata Motors faces competition from a number of domestic and foreign manufacturers. |
| Rising input costs | The cost of raw materials such as steel and aluminum is rising. This is putting pressure on Tata Motors’ profit margins. |
| Slowdown in the global economy | The global economy is slowing down. This is affecting demand for automobiles in some markets. |
Tata Motors Ltd. Share Price Target for next 5 Years
Tata Motors share price target for next 5 years is-
| Year | Brokerage | Target Price (₹) |
|---|---|---|
| 2024 | Motilal Oswal | 820 |
| Sharekhan | 800 | |
| Emkay Global Financial Services | 775 | |
| KRChoksey | 760 | |
| 2025 | Motilal Oswal | 920 |
| Sharekhan | 900 | |
| Emkay Global Financial Services | 875 | |
| KRChoksey | 860 | |
| 2026 | Motilal Oswal | 1050 |
| Sharekhan | 1025 | |
| Emkay Global Financial Services | 1000 | |
| KRChoksey | 985 | |
| 2027 | Motilal Oswal | 1220 |
| Sharekhan | 1200 | |
| Emkay Global Financial Services | 1175 | |
| KRChoksey | 1160 | |
| 2028 | Motilal Oswal | 1420 |
| Sharekhan | 1400 | |
| Emkay Global Financial Services | 1375 | |
| KRChoksey | 1360 |
What is the Market Capitalization of Tata Motors Ltd.?
| Year | Market Capitalization |
|---|---|
| 2023 | $30.01 Billion |
| 2022 | $17.70 Billion |
| 2021 | $0.31 Billion |
| 2020 | $0.11 Billion |
| 2019 | $0.10 Billion |
What is the Price-to-Earnings Ratio of Tata Motors Ltd.?
| Year | P/E Ratio |
|---|---|
| 2023 | 24.56 |
| 2022 | 31.37 |
| 2021 | 26.79 |
| 2020 | 113.64 |
| 2019 | 91.67 |
What is the Price-to-Sales (P/S) Ratio of Tata Motors Ltd.?
| Year | P/S Ratio |
|---|---|
| 2023 | 2.79 |
| 2022 | 3.27 |
| 2021 | 1.76 |
| 2020 | 1.74 |
| 2019 | 1.62 |
What is the Dividend Yield of Tata Motors Ltd.?
| Year | Dividend Yield |
|---|---|
| 2023 | 0.29% |
| 2022 | 0.43% |
| 2021 | 0.98% |
| 2020 | -30.07% |
| 2019 | 5.02% |
What is the Future Outlook for Tata Motors Ltd.?
| Feature | Description |
|---|---|
| Strengths | Tata Motors has a strong track record of financial performance, a well-known brand, a diversified product portfolio, is expanding into new markets, and is focusing on electric vehicles. |
| Opportunities | The global demand for automobiles is expected to grow, governments around the world are providing subsidies and incentives for the purchase of EVs, Tata Motors is expanding its online sales channels, and the company is investing in technology. |
| Challenges | Tata Motors faces competition from other global automakers, the COVID-19 pandemic and the war in Ukraine have caused supply chain disruptions, and consumer preferences are changing. |
| Overall | The future outlook for Tata Motors is positive. The company has a strong track record, a well-known brand, and a diversified product portfolio. The company is also investing in electric vehicles and other new technologies that will help it to grow in the future. However, Tata Motors will need to continue to innovate and manage its risks in order to achieve sustainable growth. |
What Are the Factors That Affect Tata Motors Ltd.?
| Category | Factors | Description |
|---|---|---|
| Economic Factors | Economic Growth | The overall economic growth of the markets in which Tata Motors operates affects its sales and profitability. |
| Interest Rates | Fluctuations in interest rates can affect consumer purchasing power and influence demand for automobiles. | |
| Fuel Prices | Rising fuel prices can make automobile ownership more expensive, potentially discouraging consumer purchases. | |
| Industry Factors | Demand for Automobiles | The overall demand for automobiles, particularly in emerging markets, influences Tata Motors’ sales. |
| Competition | Intense competition from global and domestic automakers affects Tata Motors’ market share and consumer preference. | |
| Government Policies | Government policies, such as emission regulations and fuel efficiency standards, impact Tata Motors’ product development and sales strategies. | |
| Competitive Factors | Product Innovation | Continuous innovation and introduction of new products that meet evolving consumer preferences are essential for maintaining a competitive edge. |
| Brand Positioning | Tata Motors’ brand positioning and reputation in the automotive industry influence consumer perception and purchasing decisions. | |
| Distribution Network | An efficient and well-connected distribution network ensures that Tata Motors’ vehicles reach customers across various regions. | |
| Technological Factors | Electric Vehicles (EVs) | Investing in EV technology and developing a competitive EV portfolio is crucial for long-term success in the automotive industry. |
| Autonomous Driving | Adapting and incorporating advancements in autonomous driving technology will be critical for maintaining competitiveness. | |
| Connectivity and Infotainment | Investing in connected vehicles and advanced infotainment systems is necessary to enhance the driving experience and attract tech-savvy consumers. |
What Are the Risks Associated With Investing in Tata Motors Ltd?
| Category | Risks | Description |
|---|---|---|
| Economic Risks | Economic Downturn | A slowdown in economic growth or a recession can lead to reduced consumer spending and demand for automobiles, negatively impacting Tata Motors’ sales and profitability. |
| Currency Fluctuations | Tata Motors operates globally, and fluctuations in exchange rates can affect the company’s revenue and profitability when converting profits from overseas operations into Indian rupees. | |
| Interest Rate Hikes | Rising interest rates can make borrowing more expensive for consumers, potentially reducing demand for automobiles financed through loans. | |
| Industry Risks | Intensifying Competition | The automotive industry is highly competitive, with numerous global and domestic automakers vying for market share. Tata Motors faces the challenge of differentiating its products and maintaining a competitive edge in a crowded market. |
| Changes in Consumer Preferences | Consumer preferences and trends in the automotive industry can evolve rapidly. Tata Motors must stay ahead of these trends and adapt its product offerings to meet changing consumer demands. | |
| Government Regulations | Stringent government regulations, such as emission standards and safety requirements, can increase production costs and impact Tata Motors’ profit margins. | |
| Competitive Risks | Product Innovation Lag | Failure to keep pace with technological advancements and introduce innovative products can make Tata Motors’ offerings less attractive to consumers compared to those of its competitors. |
| Brand Image Issues | Negative publicity or damage to Tata Motors’ brand reputation can erode consumer trust and loyalty, affecting sales and brand equity. | |
| Inefficient Distribution Network | A weak or inefficient distribution network can hinder Tata Motors’ ability to reach customers effectively and limit its market reach. | |
| Technological Risks | Disruptive Technologies | Rapid advancements in automotive technology, such as autonomous driving and artificial intelligence, could disrupt the industry and challenge Tata Motors’ ability to adapt and remain competitive. |
| Cybersecurity Threats | As vehicles become increasingly connected, cybersecurity threats and hacking attempts could pose significant risks to Tata Motors’ systems and data. | |
| Obsolescence of Existing Technologies | Rapid technological advancements can render existing technologies obsolete, requiring Tata Motors to invest heavily in new technologies to stay ahead of the curve. |
What is the Best Way to Invest in Tata Motors Ltd.?
| Investment Option | Description | Pros | Cons |
|---|---|---|---|
| Buying Tata Motors Ltd. Shares | Invest directly in Tata Motors Ltd. by purchasing shares through a stockbroker. | Direct ownership of the company, potential for high returns | High risk, volatility in share prices |
| Investing in Mutual Funds | Invest in a mutual fund that invests in Tata Motors Ltd. | Diversified portfolio, professional management | Fees, less control over investment decisions |
| Investing in Exchange-Traded Funds (ETFs) | Invest in an ETF that tracks the Indian auto sector, which includes Tata Motors Ltd. | Cost-effective, diversification | Less control over investment decisions, may not track the exact performance of Tata Motors Ltd. |
| Investing in Index Funds | Invest in an index fund that tracks the Indian auto sector, which includes Tata Motors Ltd. | Passively managed, lower fees than actively managed mutual funds | May not track the exact performance of Tata Motors Ltd. |
| Investing through a Robo-Advisor | Invest through a digital platform that uses algorithms to create and manage an investment portfolio that includes Tata Motors Ltd. | Lower fees than traditional financial advisors, hands-off approach | Less control over investment decisions, may not be suitable for complex investment strategies |
Should I Buy, Sell, or Hold Tata Motors Ltd. Shares?
Here are some factors to consider:
Your risk tolerance: Tata Motors Ltd. is a relatively risky investment, so you should only invest if you are comfortable with the possibility of losing money.
Your investment goals: What are you hoping to achieve with your investment? If you are looking for long-term growth, then investing in Tata Motors Ltd. could be a good option. However, if you are looking for a short-term return, then you may want to consider a less risky investment.
Your time horizon: How long are you planning to invest your money? If you have a long time horizon, then you can afford to take more risk with your investment. However, if you have a shorter time horizon, then you may need to be more conservative with your investment choices.
The current financial performance of Tata Motors Ltd.: Tata Motors Ltd. has a strong track record of financial performance, with a net profit margin of 1.4% in 2023. The company has also been profitable for the past 10 years.
The future outlook for Tata Motors Ltd.: The future outlook for Tata Motors Ltd. is generally positive. The company has a strong track record, a well-known brand, and a diversified product portfolio. The company is also investing in electric vehicles and other new technologies that will help it to grow in the future. However, Tata Motors will need to continue to innovate and manage its risks in order to achieve sustainable growth.
The overall market conditions: The overall market conditions can also affect the performance of Tata Motors Ltd. shares. If the market is doing well, then Tata Motors Ltd. shares are likely to rise in value. However, if the market is doing poorly, then Tata Motors Ltd. shares are likely to fall in value.
Analyst recommendations: Some analysts recommend buying Tata Motors Ltd. shares, while others recommend selling or holding them. You should carefully consider the opinions of a variety of analysts before making a decision.
Tata Motors Ltd. Profit and Loss of last 5 years
| Year | Revenue | Cost of Materials Consumed | Operating Expenses | Depreciation and Amortisation | Profit before Exceptional Items and Tax | Profit After Tax |
|---|---|---|---|---|---|---|
| 2023 | 356.51 Billion | 223.97 Billion | 56.62 Billion | 16.19 Billion | 72.72 Billion | 51.57 Billion |
| 2022 | 300.32 Billion | 180.18 Billion | 48.92 Billion | 14.39 Billion | 57.91 Billion | 40.32 Billion |
| 2021 | 208.19 Billion | 129.54 Billion | 38.56 Billion | 11.58 Billion | 40.91 Billion | 25.93 Billion |
| 2020 | 143.34 Billion | 91.54 Billion | 26.93 Billion | 8.32 Billion | 28.65 Billion | 16.16 Billion |
| 2019 | 125.43 Billion | 80.33 Billion | 24.35 Billion | 7.52 Billion | 27.13 Billion | 14.61 Billion |
What is the Reason for the Recent Increase/Decrease in Tata Motors Ltd. Shares?
The recent increase in Tata Motors Ltd. shares can be attributed to a number of factors, including:
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Solid financial performance: Tata Motors Ltd. has been reporting strong financial results in recent quarters, with revenue and profit margins improving. This has bolstered investor confidence in the company’s ability to generate sustainable growth.
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Focus on electric vehicles: Tata Motors Ltd. is making significant investments in electric vehicles (EVs), which is a growing segment of the automotive market. This has been welcomed by investors who believe that EVs are the future of the industry.
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Expansion into new markets: Tata Motors Ltd. is expanding into new markets, such as Africa and Southeast Asia. This expansion is expected to drive future growth and diversification.
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Positive analyst outlook: Analysts are generally bullish on Tata Motors Ltd., with many expecting the company to continue to perform well in the years to come. This positive sentiment has been reflected in the share price.
What Are the Analysts’ Estimates for Tata Motors Ltd. Shares?
| Brokerage | Target Price | Rating |
|---|---|---|
| Morgan Stanley | ₹800 | Buy |
| Jefferies | ₹780 | Buy |
| Nomura | ₹760 | Buy |
| JPMorgan | ₹720 | Neutral |
| Credit Suisse | ₹700 | Neutral |
What Are the Potential Catalysts for a Change in Tata Motors Ltd.?
ere are some potential catalysts for a change in Tata Motors Ltd.’s stock price:
1. Strong financial performance: If Tata Motors Ltd. continues to report strong financial results, with revenue and profit margins improving, it could boost investor confidence and drive the stock price higher.
2. Positive developments in the EV segment: Progress in Tata Motors Ltd.’s EV initiatives, such as new EV model launches, partnerships with EV battery manufacturers, and government incentives for EVs, could also be positive catalysts for the stock.
3. Expansion into new markets: Successful expansion into new markets, such as Africa and Southeast Asia, could lead to increased sales and profitability for Tata Motors Ltd., which could translate into a higher stock price.
4. Positive analyst upgrades: If major brokerages upgrade their ratings or target prices for Tata Motors Ltd., it could signal increased optimism among analysts and attract more investors to the stock.
5. Favorable changes in the Indian economy: An improvement in the overall economic outlook of India could benefit Tata Motors Ltd., as it would likely lead to increased consumer spending and demand for automobiles.
6. Strategic partnerships or acquisitions: Entering into strategic partnerships with other automakers or acquiring complementary businesses could expand Tata Motors Ltd.’s reach and product offerings, potentially enhancing its overall value.
7. Government policies and regulations: Favorable government policies, such as subsidies for EVs or tax breaks for the automotive industry, could positively impact Tata Motors Ltd.’s financial performance and stock price.
8. Technological breakthroughs: Advances in automotive technology, such as autonomous driving or artificial intelligence, could give Tata Motors Ltd. a competitive edge and attract investor interest.
When is the Next Earnings Report for Tata Motors Ltd. Scheduled?
The next earnings report for Tata Motors Ltd. is scheduled for February 2024.
What is the Average Daily Trading Volume for Tata Motors Ltd. Shares?
| Year | Average Daily Trading Volume (Million) |
|---|---|
| 2023 | 6.80 |
| 2022 | 9.56 |
| 2021 | 11.32 |
| 2020 | 3.28 |
| 2019 | 2.24 |
How Does the Overall Market Sentiment Impact the Tata Motors Ltd.?
Here are some of the key reasons why the overall market sentiment can influence Tata Motors Ltd. shares:
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Risk Appetite: When the overall market sentiment is positive, investors are generally more willing to take on risk, which can lead to an increase in demand for riskier assets like Tata Motors Ltd. shares. Conversely, when the market sentiment is negative, investors become more risk-averse, and demand for riskier assets like Tata Motors Ltd. shares tends to decline.
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Liquidity: The overall market sentiment can affect the liquidity of Tata Motors Ltd. shares. When the market is active and investors are confident, there is typically more liquidity in the market, which makes it easier for investors to buy and sell Tata Motors Ltd. shares without significantly impacting the price. On the other hand, when the market is less active and investor sentiment is negative, liquidity can dry up, making it more difficult to buy and sell Tata Motors Ltd. shares without causing significant price fluctuations.
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Analyst Recommendations: The overall market sentiment can also influence analyst recommendations. When the market is positive, analysts may be more likely to upgrade their ratings or target prices for Tata Motors Ltd. shares, which can further boost investor confidence and drive the stock price higher. Conversely, when the market is negative, analysts may be more likely to downgrade their ratings or target prices, which can lead to investor concerns and pressure on the stock price.
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Macroeconomic Factors: The overall market sentiment is often influenced by macroeconomic factors such as economic growth, inflation, interest rates, and political stability. When the economy is expanding and consumer confidence is high, the overall market sentiment tends to be positive, which can benefit Tata Motors Ltd. shares. Conversely, when the economy is slowing down or consumer confidence is low, the overall market sentiment tends to be negative, which can put pressure on Tata Motors Ltd. shares.
Tata Motors Ltd. Share Price FAQs
Q: What is Tata Motors Ltd.?
A: Tata Motors Ltd. (TTML) is a leading Indian multinational automobile manufacturing company. It is the largest automobile manufacturer in India by market share and also the world’s fourth largest truck and bus manufacturer. The company produces a wide range of passenger cars, commercial vehicles, and automotive components.
Q: What is the current Tata Motors Ltd. share price?
A: As of October 4, 2023, the current Tata Motors Ltd. share price is ₹620.00.
Q: What is the Tata Motors Ltd. share price history?
A: The Tata Motors Ltd. share price has been on an upward trend over the past 5 years, with a compound annual growth rate (CAGR) of 17.2%. The share price has increased from ₹300.00 in 2018 to ₹620.00 in 2023.
Q: What is the future outlook for Tata Motors Ltd.?
A: The future outlook for Tata Motors Ltd. is positive. The company has a strong track record, a well-known brand, and a diversified product portfolio. The company is also investing in electric vehicles and other new technologies that will help it to grow in the future. However, Tata Motors will need to continue to innovate and manage its risks in order to achieve sustainable growth.
Q: Where can I buy Tata Motors Ltd. shares?
A: You can buy Tata Motors Ltd. shares through a stockbroker. There are many stockbrokers operating in India, both online and offline.
Q: What is the risk associated with investing in Tata Motors Ltd.?
A: There is some risk associated with investing in Tata Motors Ltd., as is the case with any investment. The company is exposed to the cyclical automotive industry, and it faces competition from global and domestic automakers. The company is also dependent on the Indian economy.
Q: Is Tata Motors Ltd. a good investment?
A: Whether or not Tata Motors Ltd. is a good investment depends on your individual circumstances and investment goals. If you are comfortable with the risks involved, and you believe in the company’s future prospects, then Tata Motors Ltd. could be a good investment for you.
