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Tata Motors Limited(TML) is a leading global automobile manufacturing company. Its diversified portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles.It is one of India’s largest OEMs offering an extensive range of integrated, smart and e-mobility solutions. Tata Motors is present in over 125 countries, with a worldwide network comprising over 8,400 touch points.

Industry-Automobile

                Stock Details

Market Cap. (Cr.) 119736.5
Face Value 2
Equity (Cr.) 664.06
52 Wk. high/low 357/63.50
BSE Code 500570
NSE Code TATAMOTORS
Book Value (Rs) 162.47
Industry Automobile
P/E N/A

 

           Share Holding Pattern %

Promoter

46.41
FIIs 25.93
DII 11.84
Non Promoter Corp. 0.46
Public & Others 15.37
Total 100.00

 

fundamental-reports-elite

Source: Capitaline Corporate Database, EWL Research, Company(Investor Section).

Key Highlights:

  • TATA Motors has outperformed the Automobile Industry growth as the industry grew by more than 40% in Q3 over Q2, whereas Tata Motors actually grew by almost 50%. Sales had been stronger in China and have been stellar in North America but slides in U.K. and Europe because of lockdown due to Covid-19. TATA motors has announced new range of Refrigerated truck for smooth movement of the countrywide Covid-19 vaccination drive

  • Tata UniEVerse – a Tata Group consortium committed to address the e-mobility ecosystem Group companies working in Sync with TATA Motors to develop the EV Ecosystem in India: TATA CHEMICALS(Lithium Ion Cell manufacturing and Recycling).TATA AUTOCOMP(Battery Manufacturing),TATA POWER (Charging Infrastructure),TATA MOTOR FINANCE(Finance Facility to adopt EVs).

  • TATA Motors has establishing itself as a leader in Indian EV market .It’s Product range in EV includes Nexon and Tigor out of Which Nexon constitute 64% Market Share in EV four wheeler Market. It has the largest EV Network in India with Public charging network with 355+ chargers, 3000+ AC Chargers,100+ Captive Charging Points.

  • In Q3FY21, Consolidated: Global wholesales (units) dipped about 0.6% Y-o-Y but revenue went up by 5.5% to Rs.75,654 Crore and PAT up by 67% Y-o-Y to Rs. 2906 crores. On margins front, EBITDA, up by 540 bps at 14.8% and EBIT up by 450 bps at 6.4% Y-o-Y. on Standalone Basis: wholesale (units) growth of 18% and revenue growth of 35% Y-o-Y, with a Net loss of about Rs. 638 crores, halving what it was in the last quarter on a sequential basis.

  • Cash conversion cycle are very steady to (-15 Days) and company has reduced it’s Net Auto debt by almost Rs.7000 Crore Q-o-Q which reduces the Net Automotive Debt/ Equity to 0.96 from 1.22.

Outlook:

TML one of India’s largest original equipment manufacturers (OEM) offers a wide and diversified portfolio of cars with highest commitment to safety Worldwide. It has significantly increased it’s market share in PV to 7.5% from 4.8% from YTD and Gaining market share in MHCV while recovering in ILCV, SCV. Despite continued pandemic related uncertainties, supply bottlenecks and commodity inflation company generates highest EBITDA in PV in the last 10 years and receiving Excellent response from the  ‘New forever range’ and also committed to influence the market with it’s new Launches in JLR and TML. Company has taken price increase in Q3 and Q4, which is helping company to tackle the commodity price inflation.TML has a healthy order book in the pipeline, however shortage of semi-conductor impacting the Industry worldwide. Company is planning to Zero Auto Net debt in the next three years, the improved margins, good working capital management, tightening fixed cost, improved credit rating to AA-, rapid new launches and EV penetration is likely to rise to 7-10% of overall sales in 3-4 years makes the company futuristic. So recommend to accumulate the stock between Rs.290 to Rs.310 for target price of Rs.380.

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