StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
StockEdge Blog
  • Trending Stocks
  • Insights
    • All
    • Business Houses
    • Markets themes
    • Stock Insights
    Top performing blue chip stocks to buy and invest in 2023

    Top 5 Blue Chip Stocks to Buy and Invest in 2023

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Top 5 Defence Stocks to Invest in India

    Top 5 Defence Stocks to Invest in India

    Top 5 Stocks to Look for in 2023

    Top 5 Stocks to Look for in 2023

    Cochin Shipyard – A strong defense play for India

    Cochin Shipyard – A strong defense play for India

    Avanti Feeds – Shrimply Irresistible

    Avanti Feeds – Shrimply Irresistible

    Gati Ltd. – Can it ride the Logistic Industry’s Tailwinds?

    Gati Ltd. – Can it ride the Logistic Industry’s Tailwinds?

    Atul Auto: A Curious Case of Value Investing

    Atul Auto: A Curious Case of Value Investing

    Dalmia Bharat Ltd. – Building the nation brick by brick

    Dalmia Bharat Ltd. – Building the nation brick by brick

  • Technical Analysis
    Chart Patterns – Unique Blend of Human & Artificial Intelligence

    Chart Patterns – Unique Blend of Human & Artificial Intelligence

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    SE Blog- How to beat the street with Sector Rotation Strategy.

    SE Blog- How to beat the street with Sector Rotation Strategy.

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Derivative Analytics

    An Insightful Research Tool For Derivative Analytics

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    A Powerful Technical Indicator Beta & Beta Scans

    A Powerful Technical Indicator Beta & Beta Scans

    Technical Analysis using Edge Charts

    Technical Analysis using Edge Charts

    What is Adaptive Relative Strength & Static Relative Strength Scans?

    What is Adaptive Relative Strength & Static Relative Strength Scans?

  • Fundamental Analysis
    • All
    • Cash Flow Ratios
    • Efficiency ratios
    • Growth Ratios
    • Liquidity Ratios
    • Return Ratios
    • Solvency ratios
    • Valuation Ratios
    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Understanding the Importance of creating Fundamental Scans

    Understanding the Importance of creating Fundamental Scans

    Using My Combination Scan to Identify best in an Industry

    Using My Combination Scan to Identify best in an Industry

    Cost Income ratio

    Cost to Income Ratio(%)

    Cost of Liability

    Cost of Liabilities (%)

    Operating Cost to Assets Ratio (%)

    Operating Cost to Assets Ratio (%)

  • StockEdge Tutorials
    Chart Patterns – Unique Blend of Human & Artificial Intelligence

    Chart Patterns – Unique Blend of Human & Artificial Intelligence

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Powerful Investment Themes for Retail Investors

    Powerful Investment Themes for Retail Investors

    SE Blog- How to beat the street with Sector Rotation Strategy.

    SE Blog- How to beat the street with Sector Rotation Strategy.

    StockEdge Version Update 8.3

    StockEdge Version Update 8.3

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    StockEdge Version 8.1 – It keeps getting Better & Better

    StockEdge Version 8.1 – It keeps getting Better & Better

    StockEdge Version Update 8.0 – Like never before

    StockEdge Version Update 8.0 – Like never before

  • Mutual Fund
    Top 5 Mutual Funds for 2022 where you can start your SIP

    Top 5 Mutual Funds for 2022 where you can start your SIP

    What are Value Funds and its Advantages?

    What are Value Funds and its Advantages?

    A Beginners Guide to Thematic Funds

    A Beginners Guide to Thematic Funds

    Understanding Sector Funds and their Benefits to our Portfolio

    Understanding Sector Funds and their Benefits to our Portfolio

    Are Dividend Yield Funds a good option to invest in?

    Are Dividend Yield Funds a good option to invest in?

    What are Contra Funds and their advantages?

    What are Contra Funds and their advantages?

    Trending Tags

    No Result
    View All Result
    • Trending Stocks
    • Insights
      • All
      • Business Houses
      • Markets themes
      • Stock Insights
      Top performing blue chip stocks to buy and invest in 2023

      Top 5 Blue Chip Stocks to Buy and Invest in 2023

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Top 5 Defence Stocks to Invest in India

      Top 5 Defence Stocks to Invest in India

      Top 5 Stocks to Look for in 2023

      Top 5 Stocks to Look for in 2023

      Cochin Shipyard – A strong defense play for India

      Cochin Shipyard – A strong defense play for India

      Avanti Feeds – Shrimply Irresistible

      Avanti Feeds – Shrimply Irresistible

      Gati Ltd. – Can it ride the Logistic Industry’s Tailwinds?

      Gati Ltd. – Can it ride the Logistic Industry’s Tailwinds?

      Atul Auto: A Curious Case of Value Investing

      Atul Auto: A Curious Case of Value Investing

      Dalmia Bharat Ltd. – Building the nation brick by brick

      Dalmia Bharat Ltd. – Building the nation brick by brick

    • Technical Analysis
      Chart Patterns – Unique Blend of Human & Artificial Intelligence

      Chart Patterns – Unique Blend of Human & Artificial Intelligence

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      SE Blog- How to beat the street with Sector Rotation Strategy.

      SE Blog- How to beat the street with Sector Rotation Strategy.

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Derivative Analytics

      An Insightful Research Tool For Derivative Analytics

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      A Powerful Technical Indicator Beta & Beta Scans

      A Powerful Technical Indicator Beta & Beta Scans

      Technical Analysis using Edge Charts

      Technical Analysis using Edge Charts

      What is Adaptive Relative Strength & Static Relative Strength Scans?

      What is Adaptive Relative Strength & Static Relative Strength Scans?

    • Fundamental Analysis
      • All
      • Cash Flow Ratios
      • Efficiency ratios
      • Growth Ratios
      • Liquidity Ratios
      • Return Ratios
      • Solvency ratios
      • Valuation Ratios
      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Understanding the Importance of creating Fundamental Scans

      Understanding the Importance of creating Fundamental Scans

      Using My Combination Scan to Identify best in an Industry

      Using My Combination Scan to Identify best in an Industry

      Cost Income ratio

      Cost to Income Ratio(%)

      Cost of Liability

      Cost of Liabilities (%)

      Operating Cost to Assets Ratio (%)

      Operating Cost to Assets Ratio (%)

    • StockEdge Tutorials
      Chart Patterns – Unique Blend of Human & Artificial Intelligence

      Chart Patterns – Unique Blend of Human & Artificial Intelligence

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Powerful Investment Themes for Retail Investors

      Powerful Investment Themes for Retail Investors

      SE Blog- How to beat the street with Sector Rotation Strategy.

      SE Blog- How to beat the street with Sector Rotation Strategy.

      StockEdge Version Update 8.3

      StockEdge Version Update 8.3

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

      StockEdge Version 8.1 – It keeps getting Better & Better

      StockEdge Version 8.1 – It keeps getting Better & Better

      StockEdge Version Update 8.0 – Like never before

      StockEdge Version Update 8.0 – Like never before

    • Mutual Fund
      Top 5 Mutual Funds for 2022 where you can start your SIP

      Top 5 Mutual Funds for 2022 where you can start your SIP

      What are Value Funds and its Advantages?

      What are Value Funds and its Advantages?

      A Beginners Guide to Thematic Funds

      A Beginners Guide to Thematic Funds

      Understanding Sector Funds and their Benefits to our Portfolio

      Understanding Sector Funds and their Benefits to our Portfolio

      Are Dividend Yield Funds a good option to invest in?

      Are Dividend Yield Funds a good option to invest in?

      What are Contra Funds and their advantages?

      What are Contra Funds and their advantages?

      Trending Tags

      No Result
      View All Result
      StockEdge Blog
      Home Insights
      Tata Motors Limited – Connecting Aspirations

      Tata Motors Limited – Connecting Aspirations

      StockEdge by StockEdge
      February 10, 2021
      Reading Time: 6 mins read
      5.6k
      VIEWS
      Share on FacebookShare on TwitterShare On WhatsApp

      Table of Contents

      • Operational Highlights
      • Future Outlook:
      • Management Update
      • Product Segments
      • StockEdge Technical View
      • Bottom Line:
      • Disclaimer:

      In today’s blog, we place the spotlight on Tata Motors Ltd, which is a leading global automobile manufacturing company. The company’s share price has gained a whopping rally of 264% from its recent low on 3rd April 2020. 

      The company is engaged in manufacturing of cars, utility vehicles, pick-ups, trucks and buses. Also, Tata Motors is India’s largest and the only OEM offering an extensive range of integrated, smart and e-mobility solutions.

      Subscribe To StockEdge Club Subscribe To StockEdge Club Subscribe To StockEdge Club

      World-class manufacturing forms the essence of Tata Motors. The facilities of the company ensure that every step – from design to production to assembly – meets the highest quality standards in the manufacturing process.

      Tata Motors

      The company is driven by a passion for excellence, which is reflected across all its operations. To offer the best vehicle experience to its customers, its passionate engineering and quality talent ensures production of superior vehicles, which has led to the rapid growth in global demand for its products.

      For decades, Tata has been a very common household name in India and was known for its commercial vehicles like buses, trucks etc. After tasting the success in commercial vehicles, Tata Motors decided to enter the mass passenger car segment with the highly acclaimed Indica in 1998, which went onto become a huge success in India.

      It has operations in various countries like India, the UK, South Korea, South Africa, China, Brazil,  Austria and Slovakia through a strong global network of its subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

      Back in 2008, Tata Motors had acquired the iconic Jaguar Land Rover businesses from Ford Motor Company for a net consideration of US $2.3 billion, in an all-cash transaction.

      Tata Motors

      Tata Motors Commercial Vehicle (CV) offerings include sub-1-tonne to 55-tonne Gross Vehicle Weight (GVW) trucks and small, medium and large buses and coaches. The Passenger Vehicle (PV) offerings of TML include the NEW FOREVER range that reflects the design language of IMPACT 2.0 across cars and utility vehicles and is built using sustainable, pioneering technologies.

      The company has the vision to become the most aspirational Indian Auto Brand.

      Tata Motors
      Source: Annual Report
      Tata Motors

      Operational Highlights

      • The revenues grew during Q3FY21 to Rs 75,653 cr as compared to Rs 71,676 cr in Q3FY20. The topline grew in a healthy manner on both Indian and JLR front.
      • The EBITDA grew to Rs 11,509 cr in Q3FY21 as compared to Rs 7,196 cr in Q3FY20. EBITDA margin came in robust amid less adverse RM costs as well as lower other expenses.
      • The PAT grew to Rs 3,222 in Q3FY21 as compared to Rs 1,954 cr in Q3FY20.
      • On a consolidated basis, Free Cash Flow generation for the quarter was at Rs 7,900 crore, with net external automotive debt as of December 2020 at Rs 48,700 crore vs. Rs 61,900 crore as of Q1FY21.
      Tata Motors

      Future Outlook:

      • Electric Vehicles forms 2% of total Passenger Vehicles sales thus far in FY21. Nexon EV has crossed 2,500 units sales since launch and formed 64% of total India EV industry volumes in 9MFY21
      • The company might have some short term pressure due to the shortage of semiconductors.
      • Standalone margins were at the highest level in seven quarters. India Free Cash Flow for Q3FY21 was at Rs.2,200 crore, with investment spends at Rs.547 crore
      • Ongoing product mix improvement (higher share of Land Rover; higher share of China and North America vs. Europe and UK) played a big part in profitability improvement.
      Tata Motors

      Management Update

      • During 3QFY21, JLR said that it is back to pre-Covid levels of profitability at the EBIT level.
      • India CV revenues were up ~21% YoY despite ~8% volume decline due to better mix (higher truck, ILCV sales). CV EBITDA margins were placed at ~8%.
      • India PV sales were up 78.5% YoY on the back of ~86% volume growth achieved in Q3FY21. Margins at 3.8% compared to negative 4% in Q3FY20 while absolute EBITDA at the best level of the past 10 quarters.

      Product Segments

      Tata Motors
      Source: Annual Reports

      StockEdge Technical View

      Tata Motors trading above the weekly support zone and likely to stay positive till the stock stays above 290-300 zone. Probable resistance in the medium term comes at 375 level. Technical parameters look positive as of now. Likely to see further momentum above 342 level.

      Tata Motors

      Bottom Line:

      India’s Passenger Vehicle performance in 9MFY21 has defied the industry translating into 300 bps market share gain and healthy profitability at EBITDA level. Commercial Vehicle segment is also recovering fast, aided by return of infrastructure and mining demand in trucks and LCV resilience. At JLR, China’s performance continues to lead the way in the post Covid period.

      Strong liquidity; debt maturities well spread out; Promoters exercise their warrants amounting to Rs 2.6KCr in Jan 2021 increasing Tata Group shares (voting) to 45.82%. Standalone cash savings for 9MFY21 are at Rs 5,100 crore (vs. full year target of Rs 6,000 crore).

      Investment reduction target of Rs 3,000 crore for the year is likely to be undershot as the company would not reduce capex related to growth (currently at Rs 1,600 crore). The company is performing well in both Indian operations and also on the JLR front.

      Read our latest blog on Are Dividend Yield Funds a good option to invest in?

      Disclaimer:

      This document and the process of identifying the potential of a company has been produced for only learning purposes. Since equity involves individual judgements, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector. Our knowledge team has limited understanding and we all are learning the art and science behind this.

      Tags: InvestingStockEdge InsightsTata Motors Ltd
      ShareTweetSend
      Subscribe On Telegram Subscribe On Telegram Subscribe On Telegram
      Previous Post

      Are Dividend Yield Funds a good option to invest in?

      Next Post

      Kalyani Group – Challenging the Conventional, Defying the Impossible.

      StockEdge

      StockEdge

      StockEdge is a self-help Equity and Mutual Fund research tool. It empowers retail investors to identify investment opportunity with all the necessary data and analytics.

      Next Post
      Kalyani Group – Challenging the Conventional, Defying the Impossible.

      Kalyani Group - Challenging the Conventional, Defying the Impossible.

      Understanding Sector Funds and their Benefits to our Portfolio

      Understanding Sector Funds and their Benefits to our Portfolio

      Axis Bank Ltd – Just the Bank You Need

      Axis Bank Ltd - Just the Bank You Need

      Comments 6

      1. Kesav Reddy says:
        2 years ago

        Very insightful article. Thanx a ton for compiling it and presenting it to us.

        Reply
        • StockEdge says:
          2 years ago

          We are glad you liked the content. Keep following us on Twitter to read more such Blogs!

          Reply
      2. Sunil sharma says:
        2 years ago

        Shall I go for it for long term.

        Reply
        • StockEdge says:
          2 years ago

          We are glad you liked the content. Since the blog is for educational purpose, we suggest you to consult an investment advisor before investing as per your time horizon.

          Reply
      3. parthasarathi says:
        2 years ago

        Excellent explaination

        Reply
        • StockEdge says:
          2 years ago

          We are glad you liked the content. Keep following us on Twitter to read more such Blogs!

          Reply

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Contact Us
      • Timing (Mon-Sat): 10 am to 7 pm
      • Sales: +919830994463
      • Support: +919830994402
      • Club Support: +916289906895
      • Affiliate: +917003567131
      Recent Posts
      Top performing blue chip stocks to buy and invest in 2023
      Top 5 Blue Chip Stocks to Buy and Invest in 2023
      Adani Enterprises FPO: Detailed Analysis, GMP and Review?
      Important Links
      • StockEdge.com
      • StockEdge Premium
      • - Quarterly Membership
      • - Annual Membership
      • StockEdge Analyst
      • StockEdge Club
      • Compare Plans
      An Initiative Of

      © 2023 Kredent InfoEdge Pvt Ltd.

      Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p

      Get StockEdge App

      No Result
      View All Result
      • Home
      • Article Categories
        • Fundamental Analysis
        • Technical Analysis
        • Market Themes
        • StockEdge Tutorials
        • StockEdge Version Updates
      • Products
        • StockEdge Premium
        • StockEdge Pro
        • StockEdge Club
        • Compare Plans
      • Visit StockEdge.com

      © 2023 Kredent InfoEdge Pvt Ltd.