Raghav Khurana

FINANCIAL
MODELING REPORT
(A Comprehensive DCF and Comparable Comps Valuation)

TATA MOTORS LTD

(NSE: TATAMOTORS | BSE: 500570)
Raghav Khurana

TABLE OF
CONTENTS
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 TATA MOTORS LTD - One Page Profile
Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group,
it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world. It has operations
in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries,
associate companies and Joint Ventures (JVs).

INR (Crs)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price - 5Y
Total Sales 2,61,068 2,49,795 2,78,454 3,45,967 4,37,928 1200.00
Sales Growth (y-o-y) -13.54% -4.32% 11.47% 24.25% 26.58%
1000.00
Gross Profit Margins (%) 19.42% 21.81% 19.81% 20.69% 28.01%
EBITDA Margins (%) 6.89% 12.93% 8.88% 9.20% 13.60% 800.00
EBIT Margins (%) -1.32% 3.50% -0.04% 2.01% 7.37%
600.00
Net Profit Margins (%) -4.24% -0.76% -4.91% -1.15% 5.97%
Earnings per Share (in Rs) -35.86 -5.72 -41.13 -11.97 78.63 400.00

EPS Growth (y-o-y) -360.68% 84.06% -619.43% 70.91% 757.14% 200.00

Dividend per Share (in Rs) - - - 2.31 3.46
0.00
Dividend Growth (y-o-y) 0.00% 0.00% 0.00% -19.28% 4.40%
2019 2020 2021 2022 2023 2024

Key Financial Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volume - 5Y

Price to Earnings -1.98x -52.79x -10.55x -35.17x 12.63x 500m

EV/EBITDA 6.28x 6.06x 10.11x 7.44x 6.57x 400m

EV/Sales 0.43x 0.78x 0.90x 0.68x 0.89x 300m

Price to Book Value 0.35x 1.81x 3.23x 3.08x 3.89x 200m

Return on Equity (%) -17.81% -3.44% -30.65% -8.77% 30.78% 100m

Return on Capital Employed (%) -1.84% 4.43% -0.06% 3.88% 16.79% 0m
2019 2020 2021 2022 2023 2024

Top 10 Shareholders N. Shares (in Crs) % Holding Market Value (in Crs) Shareholding Pattern
Tata Sons Private Limited 145 43.69% 1,34,008
Life Insurance Corporation Of India 10 3.01% 9,245 Public & Government 18.43%
Sbi Nifty 50 Etf 8 2.35% 7,221
Tata Industries Limited 7 2.17% 6,663 DIIs 16.01%
Rekha Jhunjhunwala 4 1.29% 3,950
Axis Mutual Fund Trustee Limited 4 1.20% 3,668
FIIs 19.20%
Uti - Nifty Exchange Traded Fund 3 1.03% 3,144
Tata Investment Corporation Limited 1 0.33% 1,015
Investor Education & Protection Fund 1 0.29% 899 Promoters 46.36%
Ewart Investments Limited 0 0.09% 285

Managerial Remuneration Designation Remuneration X of Median Salary Capital Structure

Mr N Chandrasekaran Chairman - - Share Price as on Jun-24 923
Mr Girish Wagh Executive Director 6.96 60.21x Number of Share Outstanding 366
Mr P B Balaji Chief Financial Officer 20.78 NA Market Capitalisation 3,38,176
Mr Maloy Kumar Gupta Company Secretary 1.69 NA Less: Cash & Equivalents (45,807)
As a Policy, Mr N Chandrasekaran, Chairman, has abstrained from receiving commission from the Company and hence not stated. Add: Total Debt 1,07,263
The median remuneration of employees for the FY24 is ₹11.57 lakh. Add: Minority Interest 8,175
The percentage increased in the median remuneration of employees in the financial year was 6.1%. Enterprise Value 4,07,806

Key Points
Tata Passenger Vehicles: This includes Tata PV, EV India, FIAPL JO results and International business (PV + EV). VAHAN Domestic Market share in H1FY24 was 13.5%. The
company has 287 dealers for EVs in 190+ cities in H1FY24 and ~75% market share in EV market. The charging infra also reached to ~77800 in H1FY24.
Capex: The company spent Rs. ~3781 crs. in H1FY24. Major expenditure was done on PV + EV segment. FY24 capex estimated at ~ Rs. 8,000 crs. as electrification investments
step up.
Expansion: The company is expanding its manufacturing capacity after acquiring the facility from Ford in Sanand. The annual capacity of 300,000 units - scalable to 420,000
units. Industrialization of Sanand plant to begin in CY2024.
Robust Infrastructure: The Group owns 10 manufacturing facilities in India, 5 in UK, 2 in Europe, and has also set up a manufacturing facility in China in a Joint Venture with
Chery Automobiles. It also operates various R&D centres from UK, North America, Europe and India.
IPO of Tata Technologies: In Nov,23, Tata Technologies (a subsidiary of Tata Motors) issued its IPO at offer price of Rs. 500/-. IPO aggregated to ~Rs. 30,000 mn, comprising
of an offer for sale of 46,275,000 Equity Shares by the Company amounting to Rs. 23,137.50 mn, 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd. amounting to Rs.
4,858.43 mn and 4,858,425 Equity Shares by Tata Capital Growth Fund I amounting to Rs. 2,429.21 mn. Consequently, Company’s shareholding in Tata Technologies Limited
reduced from 64.79% to 53.39%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Historical Financial Statement

Historical Financial Statement - TATA MOTORS LTD
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 LTM

Income Statement
Sales ₹ 2,63,158.98 ₹ 2,73,045.60 ₹ 2,69,692.51 ₹ 2,91,550.48 ₹ 3,01,938.40 ₹ 2,61,067.97 ₹ 2,49,794.75 ₹ 2,78,453.62 ₹ 3,45,966.97 ₹ 4,37,927.77 ₹ 4,37,927.77
Sales Growth - 3.76% -1.23% 8.10% 3.56% -13.54% -4.32% 11.47% 24.25% 26.58% 0.00%

COGS ₹ 2,02,856.88 ₹ 2,05,509.07 ₹ 2,05,454.24 ₹ 2,28,429.83 ₹ 2,42,845.53 ₹ 2,10,376.07 ₹ 1,95,326.04 ₹ 2,23,300.01 ₹ 2,74,403.64 ₹ 3,15,242.34 ₹ 3,78,389.43
COGS % Sales 77.09% 75.27% 76.18% 78.35% 80.43% 80.58% 78.19% 80.19% 79.31% 71.99% 86.40%

Gross Profit ₹ 60,302.10 ₹ 67,536.53 ₹ 64,238.27 ₹ 63,120.65 ₹ 59,092.87 ₹ 50,691.90 ₹ 54,468.71 ₹ 55,153.61 ₹ 71,563.33 ₹ 1,22,685.43 ₹ 59,538.34
Gross Margins 22.91% 24.73% 23.82% 21.65% 19.57% 19.42% 21.81% 19.81% 20.69% 28.01% 13.60%

Selling & General Expense ₹ 21,063.45 ₹ 29,141.28 ₹ 34,649.58 ₹ 31,662.97 ₹ 34,428.54 ₹ 32,704.83 ₹ 22,181.28 ₹ 30,433.52 ₹ 39,747.53 ₹ 63,147.09 ₹ 0.00
S&G Exp % Sales 8.00% 10.67% 12.85% 10.86% 11.40% 12.53% 8.88% 10.93% 11.49% 14.42% 0.00%

EBITDA ₹ 39,238.65 ₹ 38,395.25 ₹ 29,588.69 ₹ 31,457.68 ₹ 24,664.33 ₹ 17,987.07 ₹ 32,287.43 ₹ 24,720.09 ₹ 31,815.80 ₹ 59,538.34 ₹ 59,538.34
EBITDA Margins 14.91% 14.06% 10.97% 10.79% 8.17% 6.89% 12.93% 8.88% 9.20% 13.60% 13.60%

Interest ₹ 4,861.49 ₹ 4,889.08 ₹ 4,238.01 ₹ 4,681.79 ₹ 5,758.60 ₹ 7,243.33 ₹ 8,097.17 ₹ 9,311.86 ₹ 10,225.48 ₹ 9,985.76 ₹ 9,985.76
Interest % Sales 1.85% 1.79% 1.57% 1.61% 1.91% 2.77% 3.24% 3.34% 2.96% 2.28% 2.28%

Depriciation ₹ 13,388.63 ₹ 16,710.78 ₹ 17,904.99 ₹ 21,553.59 ₹ 23,590.63 ₹ 21,425.43 ₹ 23,546.71 ₹ 24,835.69 ₹ 24,860.36 ₹ 27,270.13 ₹ 27,270.13
Depriciation % Sales 5.09% 6.12% 6.64% 7.39% 7.81% 8.21% 9.43% 8.92% 7.19% 6.23% 6.23%

Earning before Tax ₹ 20,988.53 ₹ 16,795.39 ₹ 7,445.69 ₹ 5,222.30 ₹ (4,684.90) ₹ (10,681.69) ₹ 643.55 ₹ (9,427.46) ₹ (3,270.04) ₹ 22,282.45 ₹ 22,282.45
EBT % Sales 7.98% 6.15% 2.76% 1.79% -1.55% -4.09% 0.26% -3.39% -0.95% 5.09% 5.09%

Tax ₹ 7,642.91 ₹ 3,025.05 ₹ 3,251.23 ₹ 4,341.93 ₹ (2,437.45) ₹ 395.25 ₹ 2,541.86 ₹ 4,231.29 ₹ 704.06 ₹ (3,851.64) ₹ (3,851.64)
Effective Tax Rate 36.41% 18.01% 43.67% 83.14% 52.03% -3.70% 394.97% -44.88% -21.53% -17.29% -17.29%

Net Profit ₹ 13,345.62 ₹ 13,770.34 ₹ 4,194.46 ₹ 880.37 ₹ (2,247.45) ₹ (11,076.94) ₹ (1,898.31) ₹ (13,658.75) ₹ (3,974.10) ₹ 26,134.09 ₹ 26,134.09
Net Margins 5.07% 5.04% 1.56% 0.30% -0.74% -4.24% -0.76% -4.91% -1.15% 5.97% 5.97%

No. of Equity Shares 288.74 288.72 288.73 288.73 288.73 308.9 332.03 332.07 332.13 332.37 332.37

Earning per Share ₹ 46.22 ₹ 47.69 ₹ 14.53 ₹ 3.05 ₹ (7.78) ₹ (35.86) ₹ (5.72) ₹ (41.13) ₹ (11.97) ₹ 78.63 ₹ 78.63
EPS Growth % 3.19% -69.54% -79.01% -355.28% -360.68% 84.06% -619.43% 70.91% 757.14% 0.00%

Dividend per Share - ₹ 0.24 - - - - - - ₹ 2.31 ₹ 3.46 -

Dividend payout Ratio 0.00% 0.49% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -19.28% 4.40% 0.00%

Retained Earnings 100.00% 99.51% 100.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 95.60% 100.00%
Balance Sheet
Equity Share Capital ₹ 643.78 ₹ 679.18 ₹ 679.22 ₹ 679.22 ₹ 679.22 ₹ 719.54 ₹ 765.81 ₹ 765.88 ₹ 766.02 ₹ 766.50 -
Reserves ₹ 55,618.14 ₹ 78,273.23 ₹ 57,382.67 ₹ 94,748.69 ₹ 59,500.34 ₹ 61,491.49 ₹ 54,480.91 ₹ 43,795.36 ₹ 44,555.77 ₹ 84,151.52 -
Borrowings ₹ 73,610.39 ₹ 69,359.96 ₹ 78,603.98 ₹ 88,950.47 ₹ 1,06,175.34 ₹ 1,24,787.64 ₹ 1,42,130.57 ₹ 1,46,449.03 ₹ 1,34,113.44 ₹ 1,07,262.50 -
Other Liabilities ₹ 1,07,442.48 ₹ 1,14,871.75 ₹ 1,35,914.49 ₹ 1,42,813.43 ₹ 1,39,348.59 ₹ 1,33,180.72 ₹ 1,44,192.62 ₹ 1,38,051.22 ₹ 1,55,239.20 ₹ 1,78,483.44 -
Total Liablilities ₹ 2,37,314.79 ₹ 2,63,184.12 ₹ 2,72,580.36 ₹ 3,27,191.81 ₹ 3,05,703.49 ₹ 3,20,179.39 ₹ 3,41,569.91 ₹ 3,29,061.49 ₹ 3,34,674.43 ₹ 3,70,663.96 -

Fixed Assets Net Block ₹ 88,479.49 ₹ 1,07,231.76 ₹ 95,944.08 ₹ 1,21,413.86 ₹ 1,11,234.47 ₹ 1,27,107.14 ₹ 1,38,707.61 ₹ 1,38,855.45 ₹ 1,32,079.76 ₹ 1,46,046.56 -
Capital Work in Progress ₹ 28,640.09 ₹ 25,918.94 ₹ 33,698.84 ₹ 40,033.50 ₹ 31,883.84 ₹ 35,622.29 ₹ 20,963.93 ₹ 10,251.09 ₹ 14,274.50 ₹ 10,937.33 -
Investments ₹ 15,336.74 ₹ 23,767.02 ₹ 20,337.92 ₹ 20,812.75 ₹ 15,770.72 ₹ 16,308.48 ₹ 24,620.28 ₹ 29,379.53 ₹ 26,379.16 ₹ 22,971.07 -
Other Assets ₹ 30,891.17 ₹ 29,579.36 ₹ 37,360.78 ₹ 48,286.86 ₹ 56,155.74 ₹ 58,784.94 ₹ 61,717.96 ₹ 62,223.77 ₹ 68,432.09 ₹ 80,162.21 -
Total Non Current Assets ₹ 1,63,347.49 ₹ 1,86,497.08 ₹ 1,87,341.62 ₹ 2,30,546.97 ₹ 2,15,044.77 ₹ 2,37,822.85 ₹ 2,46,009.78 ₹ 2,40,709.84 ₹ 2,41,165.51 ₹ 2,60,117.17 -

Receivables ₹ 12,579.20 ₹ 13,570.91 ₹ 14,075.55 ₹ 19,893.30 ₹ 18,996.17 ₹ 11,172.69 ₹ 12,679.08 ₹ 12,442.12 ₹ 15,737.97 ₹ 16,951.81 -
Inventory ₹ 29,272.34 ₹ 32,655.73 ₹ 35,085.31 ₹ 42,137.63 ₹ 39,013.73 ₹ 37,456.88 ₹ 36,088.59 ₹ 35,240.34 ₹ 40,755.39 ₹ 47,788.29 -
Cash & Bank ₹ 32,115.76 ₹ 30,460.40 ₹ 36,077.88 ₹ 34,613.91 ₹ 32,648.82 ₹ 33,726.97 ₹ 46,792.46 ₹ 40,669.19 ₹ 37,015.56 ₹ 45,806.69 -
Total Current Assets ₹ 73,967.30 ₹ 76,687.04 ₹ 85,238.74 ₹ 96,644.84 ₹ 90,658.72 ₹ 82,356.54 ₹ 95,560.13 ₹ 88,351.65 ₹ 93,508.92 ₹ 1,10,546.79 -

Total Assets ₹ 2,37,314.79 ₹ 2,63,184.12 ₹ 2,72,580.36 ₹ 3,27,191.81 ₹ 3,05,703.49 ₹ 3,20,179.39 ₹ 3,41,569.91 ₹ 3,29,061.49 ₹ 3,34,674.43 ₹ 3,70,663.96 -

CHECK TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

Cash Flow Statements

Operating Activites
Profit from operations ₹ 43,397.00 ₹ 38,626.00 ₹ 28,840.00 ₹ 33,312.00 ₹ 28,771.00 ₹ 23,352.00 ₹ 31,198.00 ₹ 26,943.00 ₹ 41,694.00 ₹ 65,106.00 -
Receivables ₹ (3,179.00) ₹ (2,223.00) ₹ (4,152.00) ₹ (10,688.00) ₹ (9,109.00) ₹ 9,950.00 ₹ (5,505.00) ₹ 185.00 ₹ (2,213.00) ₹ (1,875.00) -
Inventory ₹ (3,692.00) ₹ (5,743.00) ₹ (6,621.00) ₹ (3,560.00) ₹ 2,069.00 ₹ 2,326.00 ₹ 3,814.00 ₹ 472.00 ₹ (5,665.00) ₹ (7,265.00) -
Payables ₹ 3,598.00 ₹ 3,947.00 ₹ 9,301.00 ₹ 7,320.00 ₹ (4,692.00) ₹ (8,085.00) ₹ 5,748.00 ₹ (7,012.00) ₹ 6,945.00 ₹ 13,706.00 -
Loans Advances - ₹ (520.00) - - - - - - - - -
Other WC items ₹ (398.00) ₹ 5,852.00 ₹ 4,727.00 ₹ 494.00 ₹ 4,512.00 ₹ 875.00 ₹ (4,150.00) ₹ (4,396.00) ₹ (2,194.00) ₹ 2,760.00 -
Working capital changes ₹ (3,672.00) ₹ 1,313.00 ₹ 3,254.00 ₹ (6,434.00) ₹ (7,221.00) ₹ 5,065.00 ₹ (93.00) ₹ (10,750.00) ₹ (3,127.00) ₹ 7,325.00 -
Direct taxes ₹ (4,194.00) ₹ (2,040.00) ₹ (1,895.00) ₹ (3,021.00) ₹ (2,659.00) ₹ (1,785.00) ₹ (2,105.00) ₹ (1,910.00) ₹ (3,179.00) ₹ (4,516.00) -
Cash from Operating Activities ₹ 31,860.00 ₹ 39,212.00 ₹ 33,454.00 ₹ 17,423.00 ₹ 11,671.00 ₹ 31,698.00 ₹ 28,907.00 ₹ 3,532.00 ₹ 32,261.00 ₹ 75,241.00 -

Investing Activities
Fixed assets purchased ₹ (31,962.00) ₹ (31,503.00) ₹ (16,072.00) ₹ (35,079.00) ₹ (35,304.00) ₹ (29,702.00) ₹ (20,205.00) ₹ (15,168.00) ₹ (19,230.00) ₹ (31,414.00) -
Fixed assets sold ₹ 74.00 ₹ 59.00 ₹ 53.00 ₹ 30.00 ₹ 67.00 ₹ 171.00 ₹ 351.00 ₹ 230.00 ₹ 285.00 ₹ 231.00 -
Investments purchased ₹ (5,461.00) ₹ (4,728.00) ₹ (6.00) ₹ (329.00) ₹ (130.00) ₹ (1,439.00) ₹ (7,530.00) ₹ (3,008.00) ₹ (50.00) ₹ (74.00) -
Investments sold ₹ 42.00 ₹ 89.00 ₹ 1,965.00 ₹ 2,381.00 ₹ 5,644.00 ₹ 21.00 ₹ 226.00 ₹ 104.00 ₹ 6,895.00 ₹ 10,820.00 -
Interest received ₹ 698.00 ₹ 731.00 ₹ 638.00 ₹ 690.00 ₹ 761.00 ₹ 1,104.00 ₹ 428.00 ₹ 653.00 ₹ 973.00 ₹ 2,493.00 -
Dividends received ₹ 80.00 ₹ 58.00 ₹ 620.00 ₹ 1,797.00 ₹ 232.00 ₹ 21.00 ₹ 18.00 ₹ 32.00 ₹ 46.00 ₹ 47.00 -
Investment in group cos ₹ (160.00) - ₹ (107.00) ₹ (4.00) ₹ (9.00) ₹ (606.00) ₹ (10.00) - - ₹ (150.00) -
Redemp n Canc of Shares - - - ₹ 14.00 ₹ 533.00 - - - ₹ 19.00 ₹ 108.00 -
Acquisition of companies - ₹ (111.00) - - ₹ (8.00) ₹ (27.00) - ₹ (98.00) - - -
Inter corporate deposits - - - - - - - - - ₹ (24.00) -
Other investing items ₹ 456.00 ₹ (1,289.00) ₹ (26,663.00) ₹ 5,360.00 ₹ 7,335.00 ₹ (2,659.00) ₹ 1,051.00 ₹ 12,813.00 ₹ (4,357.00) ₹ (4,817.00) -
Cash from Investing Activities ₹ (36,233.00) ₹ (36,694.00) ₹ (39,572.00) ₹ (25,140.00) ₹ (20,879.00) ₹ (33,116.00) ₹ (25,671.00) ₹ (4,442.00) ₹ (15,419.00) ₹ (22,780.00) -

Financing Activities
Proceeds from shares - ₹ 7,433.00 ₹ 5.00 - - ₹ 3,889.00 ₹ 2,603.00 ₹ 19.00 ₹ 20.00 ₹ 82.00 -
Redemption of debentures ₹ (744.00) - - - - - - - - - -
Proceeds from borrowings ₹ 36,363.00 ₹ 19,519.00 ₹ 33,390.00 ₹ 37,482.00 ₹ 51,128.00 ₹ 38,297.00 ₹ 46,641.00 ₹ 46,578.00 ₹ 43,934.00 ₹ 18,747.00 -
Repayment of borrowings ₹ (23,332.00) ₹ (24,924.00) ₹ (21,732.00) ₹ (29,964.00) ₹ (35,198.00) ₹ (29,847.00) ₹ (29,709.00) ₹ (42,816.00) ₹ (62,557.00) ₹ (47,332.00) -
Interest paid fin ₹ (6,307.00) ₹ (5,716.00) ₹ (5,336.00) ₹ (5,411.00) ₹ (7,005.00) ₹ (7,518.00) ₹ (8,123.00) ₹ (9,251.00) ₹ (9,336.00) ₹ (9,332.00) -
Dividends paid ₹ (720.00) ₹ (108.00) ₹ (121.00) ₹ (96.00) ₹ (95.00) ₹ (57.00) ₹ (30.00) ₹ (100.00) ₹ (141.00) ₹ (1,059.00) -
Financial liabilities - - - - - ₹ (1,346.00) ₹ (1,477.00) ₹ (1,559.00) ₹ (1,517.00) ₹ (1,924.00) -
Other financing items ₹ (57.00) - - - - ₹ (29.00) - ₹ 3,750.00 ₹ 3,355.00 ₹ 3,812.00 -
Cash from FInancing Activities ₹ 5,203.00 ₹ (3,796.00) ₹ 6,206.00 ₹ 2,011.00 ₹ 8,830.00 ₹ 3,389.00 ₹ 9,905.00 ₹ (3,379.00) ₹ (26,242.00) ₹ (37,006.00) -

Net Cash Flow ₹ 830.00 ₹ (1,278.00) ₹ 88.00 ₹ (5,706.00) ₹ (378.00) ₹ 1,971.00 ₹ 13,141.00 ₹ (4,289.00) ₹ (9,400.00) ₹ 15,455.00 -
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Ratio Analysis
Ratio Analysis - TATA MOTORS LTD
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trend Mean Median

Sales Growth 3.76% -1.23% 8.10% 3.56% -13.54% -4.32% 11.47% 24.25% 26.58% 6.52% 3.76%
EBITDA Growth -2.15% -22.94% 6.32% -21.60% -27.07% 79.50% -23.44% 28.70% 87.13% 11.61% -2.15%
EBIT Growth -19.98% -55.67% -29.86% -189.71% 128.00% -106.02% -1564.91% -65.31% -781.41% -298.32% -65.31%
Net Profit Growth 3.18% -69.54% -79.01% -355.28% 392.87% -82.86% 619.52% -70.90% -757.61% -44.40% -70.90%
Dividend Growth 0.00% -100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 49.99% -5.56% 0.00%

Gross Margin 22.91% 24.73% 23.82% 21.65% 19.57% 19.42% 21.81% 19.81% 20.69% 28.01% 22.24% 21.73%
EBITDA Margin 14.91% 14.06% 10.97% 10.79% 8.17% 6.89% 12.93% 8.88% 9.20% 13.60% 11.04% 10.88%
EBIT Margin 9.82% 7.94% 4.33% 3.40% 0.36% -1.32% 3.50% -0.04% 2.01% 7.37% 3.74% 3.45%
EBT Margin 7.98% 6.15% 2.76% 1.79% -1.55% -4.09% 0.26% -3.39% -0.95% 5.09% 1.41% 1.02%
Net Profit Margin 5.07% 5.04% 1.56% 0.30% -0.74% -4.24% -0.76% -4.91% -1.15% 5.97% 0.61% -0.22%

Sales Expenses % Sales 8.00% 10.67% 12.85% 10.86% 11.40% 12.53% 8.88% 10.93% 11.49% 14.42% 11.20% 11.17%
Depreciation % Sales 5.09% 6.12% 6.64% 7.39% 7.81% 8.21% 9.43% 8.92% 7.19% 6.23% 7.30% 7.29%
Operating Income % Sales 9.82% 7.94% 4.33% 3.40% 0.36% -1.32% 3.50% -0.04% 2.01% 7.37% 3.74% 3.45%

Return on Capital Employed 19.90% 14.62% 8.55% 5.37% 0.65% -1.84% 4.43% -0.06% 3.88% 16.79% 7.23% 4.90%
Retained Earnings % 100.00% 99.51% 100.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 95.60% 49.51% 47.80%
Return on Equity % 23.72% 17.44% 7.22% 0.92% -3.73% -17.81% -3.44% -30.65% -8.77% 30.78% 1.57% -1.26%
Self Sustained Growth Rate 23.72% 17.36% 7.22% 0.92% 0.00% 0.00% 0.00% 0.00% 0.00% 29.42% 7.86% 0.46%
Interest Coverage Ratio 5.32x 4.44x 2.76x 2.12x 0.19x -0.47x 1.08x -0.01x 0.68x 3.23x 1.93x 1.60x

Debtor Turnover Ratio 20.92x 20.12x 19.16x 14.66x 15.89x 23.37x 19.70x 22.38x 21.98x 25.83x 20.40x 20.52x
Creditor Turnover Ratio 2.45x 2.38x 1.98x 2.04x 2.17x 1.96x 1.73x 2.02x 2.23x 2.45x 2.14x 2.10x
Inventory Turnover 8.99x 8.36x 7.69x 6.92x 7.74x 6.97x 6.92x 7.90x 8.49x 9.16x 7.91x 7.82x
Fixed Asset Turnover 2.97x 2.55x 2.81x 2.40x 2.71x 2.05x 1.80x 2.01x 2.62x 3.00x 2.49x 2.58x
Capital Turnover Ratio 4.68x 3.46x 4.64x 3.06x 5.02x 4.20x 4.52x 6.25x 7.63x 5.16x 4.86x 4.66x

(in days)
Debtor Days 17 18 19 25 23 16 19 16 17 14 18 18
Payable Days 149 154 184 179 168 186 211 181 164 149 172 174
Inventory Days 41 44 47 53 47 52 53 46 43 40 47 47
Cash Conversion Cycle -91 -92 -117 -101 -98 -118 -139 -118 -104 -95 -107 -103

CFO/Sales 12.11% 14.36% 12.40% 5.98% 3.87% 12.14% 11.57% 1.27% 9.32% 17.18% 10.02% 11.84%
CFO/Total Assets 13.43% 14.90% 12.27% 5.33% 3.82% 9.90% 8.46% 1.07% 9.64% 20.30% 9.91% 9.77%
CFO/Total Debt 43.28% 56.53% 42.56% 19.59% 10.99% 25.40% 20.34% 2.41% 24.06% 70.15% 31.53% 24.73%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Forecasting
TATA MOTORS LTD - Sales Forecasting TATA MOTORS LTD - EBITDA Forecasting TATA MOTORS LTD - Earning per Share Forecasting
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth Year Weight Year EPS EPS Growth
1 2015A 2,63,159.0 1 2015A 39,238.7 1 2015A 46.2
2 2016A 2,73,045.6 3.76% 2 2016A 38,395.3 -2.15% 2 2016A 47.7 3.19%
3 2017A 2,69,692.5 -1.23% 3 2017A 29,588.7 -22.94% 3 2017A 14.5 -69.54%
4 2018A 2,91,550.5 8.10% 4 2018A 31,457.7 6.32% 4 2018A 3.0 -79.01%
5 2019A 3,01,938.4 3.56% 5 2019A 24,664.3 -21.60% 5 2019A -7.8 -355.28%
6 2020A 2,61,068.0 -13.54% 6 2020A 17,987.1 -27.07% 6 2020A -35.9 360.68%
7 2021A 2,49,794.8 -4.32% 7 2021A 32,287.4 79.50% 7 2021A -5.7 -84.06%
8 2022A 2,78,453.6 11.47% 8 2022A 24,720.1 -23.44% 8 2022A -41.1 619.43%
9 2023A 3,45,967.0 24.25% 9 2023A 31,815.8 28.70% 9 2023A -12.0 -70.91%
10 2024A 4,37,927.8 26.58% 10 2024A 59,538.3 87.13% 10 2024A 78.6 -757.14%
11 2025E 3,62,627.6 -17.19% 11 2025E 36,573.0 -38.57% 11 2025E -6.5 -108.29%
12 2026E 3,74,512.7 3.28% 12 2026E 37,228.2 1.79% 12 2026E -9.3 42.63%
13 2027E 3,86,397.7 3.17% 13 2027E 37,883.4 1.76% 13 2027E -12.1 29.89%
14 2028E 3,98,282.8 3.08% 14 2028E 38,538.6 1.73% 14 2028E -14.9 23.01%
15 2029E 4,10,167.9 2.98% 15 2029E 39,193.9 1.70% 15 2029E -17.6 18.71%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Beta Drifting
Regression Beta - 2 Years Weekly

Tata Motors Weekly Returns Nifty Returns Beta Drifting

Date Closing Price Return Date Return Levered Raw Beta 1.11
27-06-2022 410.2 27-06-2022 Beta Weight 75.00%
04-07-2022 438.8 6.99% 04-07-2022 2.97%
11-07-2022 437.5 -0.31% 11-07-2022 -1.06% Market Beta 1.00
18-07-2022 452.1 3.34% 18-07-2022 4.18% Market Beta Weight 25.00%
25-07-2022 446.8 -1.17% 25-07-2022 2.62%
01-08-2022 462.4 3.48% 01-08-2022 1.39% Adjusted Beta 1.09
08-08-2022 474.6 2.64% 08-08-2022 1.73%
15-08-2022 468.1 -1.37% 15-08-2022 0.34%
22-08-2022 462.2 -1.26% 22-08-2022 -1.12%
29-08-2022 458.9 -0.71% 29-08-2022 -0.11%
05-09-2022 443.1 -3.43% 05-09-2022 1.68%
12-09-2022 429.8 -3.01% 12-09-2022 -1.70%
19-09-2022 420.5 -2.17% 19-09-2022 -1.16%
26-09-2022 402.1 -4.37% 26-09-2022 -1.34%
03-10-2022 409.6 1.87% 03-10-2022 1.29%
10-10-2022 393.8 -3.86% 10-10-2022 -0.74%
17-10-2022 395.6 0.45% 17-10-2022 2.27%
24-10-2022 407.4 2.98% 24-10-2022 1.20%
31-10-2022 422.7 3.77% 31-10-2022 1.86%
07-11-2022 420.9 -0.43% 07-11-2022 1.28%
14-11-2022 421.2 0.07% 14-11-2022 -0.23%
21-11-2022 430.5 2.22% 21-11-2022 1.12%
28-11-2022 432.7 0.51% 28-11-2022 0.99%
05-12-2022 410.7 -5.08% 05-12-2022 -1.07%
12-12-2022 419.0 2.01% 12-12-2022 -1.23%
19-12-2022 376.0 -10.26% 19-12-2022 -2.53%
26-12-2022 385.6 2.54% 26-12-2022 1.68%
02-01-2023 379.6 -1.53% 02-01-2023 -1.36%
09-01-2023 409.0 7.72% 09-01-2023 0.54%
16-01-2023 400.7 -2.03% 16-01-2023 0.40%
23-01-2023 442.8 10.53% 23-01-2023 -2.35%
30-01-2023 442.7 -0.03% 30-01-2023 1.42%
06-02-2023 443.1 0.09% 06-02-2023 0.01%
13-02-2023 437.2 -1.33% 13-02-2023 0.49%
20-02-2023 425.1 -2.76% 20-02-2023 -2.67%
27-02-2023 425.4 0.06% 27-02-2023 0.74%
06-03-2023 433.2 1.83% 06-03-2023 -1.03%
13-03-2023 416.4 -3.87% 13-03-2023 -1.80%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Weighted Average Cost of Capital

All figures are in INR unless stated otherwise

Peer Comps
Debt / Debt / Levered Unlevered
1
Name of the Comp Country Total Debt Total Equity Tax Rate Equity Capital Beta 2 Beta 3

Tata Motors India 107262.5 361144.3 30.00% 29.70% 22.90% 0.92 0.76
Ashok Leyland India 40802.2 71325.8 30.00% 57.21% 36.39% 0.74 0.53
Olectra Greentec India 120.8 14677.3 30.00% 0.82% 0.82% 0.59 0.59
Force Motors India 524.5 11875.2 30.00% 4.42% 4.23% 0.67 0.65
SML ISUZU India 421.3 3060.6 30.00% 13.76% 12.10% 0.80 0.73

Average 30.00% 21.18% 15.29% 0.74 0.65

Median 30.00% 13.76% 12.10% 0.74 0.65

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 2.08% Risk Free Rate 6.95%

Tax Rate 30.00% Equity Risk Premium 8.66%
Post-Tax Cost of Debt 1.46% Levered Beta 4 0.73
Cost of Equity 13.29%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.65

Total Debt 107262.5 22.90% 15.29% Target Debt/ Equity 18.05%
Market Capitalisation 361144.3 77.10% 84.71% Tax Rate 30.00%
Total Capital 468406.8 100.00% 100.00% Levered Beta 0.73

Debt/ Equity 29.70% 18.05% Weighted Average Cost of Capital

Notes Cost of Equity 13.29%

1. Tax Rate considered as Marginal Tax rate for the country Equity Weight 84.71%
2. Levered beta is based on 5 year monthly data
3. Unlevered beta= Levered Beta/ 1+(1-Tax rate)*Debt by Equity Cost of Debt 1.46%
4. Levered beta= Unlevered Beta* 1+(1-Tax rate)*Debt by Equity Debt Weight 15.29%

WACC 11.48%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Common Size Statement

Common Size Income Statement - TATA MOTORS LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 62.03% 60.84% 64.26% 64.45% 64.34% 63.16% 61.49% 64.39% 66.84% 62.64%
Change in Inventory 1.27% 1.01% 2.74% 0.70% -0.68% -0.85% -1.88% -0.57% 1.38% 0.36%
Power and Fuel 0.43% 0.42% 0.43% 0.45% 0.53% 0.48% 0.45% 0.78% 0.73% 0.00%
Other Mfr. Exp 6.15% 4.43% 3.73% 3.76% 3.87% 4.42% 3.31% 3.39% 3.40% 0.00%
Employee Cost 9.74% 10.58% 10.51% 10.39% 11.01% 11.66% 11.07% 11.06% 9.73% 9.70%
Selling and admin 8.97% 8.05% 11.14% 10.63% 10.84% 11.20% 9.21% 10.49% 10.07% 0.00%
Other Expenses -0.97% 2.62% 1.71% 0.23% 0.57% 1.32% -0.33% 0.44% 1.42% 14.42%
Other Income 0.27% -0.98% 0.69% 2.03% -8.84% 0.04% -4.45% 0.87% 1.83% 1.30%
Depreciation 5.09% 6.12% 6.64% 7.39% 7.81% 8.21% 9.43% 8.92% 7.19% 6.23%
Interest 1.85% 1.79% 1.57% 1.61% 1.91% 2.77% 3.24% 3.34% 2.96% 2.28%
Profit before tax 8.25% 5.17% 3.45% 3.83% -10.39% -4.05% -4.19% -2.52% 0.88% 6.38%
Tax 2.90% 1.11% 1.21% 1.49% -0.81% 0.15% 1.02% 1.52% 0.20% -0.88%
Net profit 5.31% 4.24% 2.76% 3.08% -9.55% -4.62% -5.38% -4.11% 0.70% 7.17%
Dividend Amount 0.00% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.22% 0.26%

Common Size Balance Sheet - TATA MOTORS LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.27% 0.26% 0.25% 0.21% 0.22% 0.22% 0.22% 0.23% 0.23% 0.21%
Reserves 23.44% 29.74% 21.05% 28.96% 19.46% 19.21% 15.95% 13.31% 13.31% 22.70%
Borrowings 31.02% 26.35% 28.84% 27.19% 34.73% 38.97% 41.61% 44.51% 40.07% 28.94%
Other Liabilities 45.27% 43.65% 49.86% 43.65% 45.58% 41.60% 42.21% 41.95% 46.39% 48.15%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 37.28% 40.74% 35.20% 37.11% 36.39% 39.70% 40.61% 42.20% 39.47% 39.40%
Capital Work in Progress 12.07% 9.85% 12.36% 12.24% 10.43% 11.13% 6.14% 3.12% 4.27% 2.95%
Investments 6.46% 9.03% 7.46% 6.36% 5.16% 5.09% 7.21% 8.93% 7.88% 6.20%
Other Assets 13.02% 11.24% 13.71% 14.76% 18.37% 18.36% 18.07% 18.91% 20.45% 21.63%
Receivables 5.30% 5.16% 5.16% 6.08% 6.21% 3.49% 3.71% 3.78% 4.70% 4.57%
Inventory 12.33% 12.41% 12.87% 12.88% 12.76% 11.70% 10.57% 10.71% 12.18% 12.89%
Cash & Bank 13.53% 11.57% 13.24% 10.58% 10.68% 10.53% 13.70% 12.36% 11.06% 12.36%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Intrinsic Growth
Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Inventories 37,457.0 36,089.0 35,240.0 40,755.0 47,788.0
Trade receivables 11,173.0 12,679.0 12,442.0 15,738.0 16,952.0
Short term loans 39.0 142.0 47.0 119.0 168.0
Other asset items 58,746.0 61,576.0 62,177.0 68,313.0 78,851.0
Total Current Assets 1,07,415.0 1,10,486.0 1,09,906.0 1,24,925.0 1,43,759.0

Current Liabilities
Trade Payables 66,398.0 76,040.0 69,750.0 79,252.0 93,979.0
Advance from Customers - - - - -
Other liability items 65,969.0 66,579.0 64,030.0 68,710.0 75,186.0
Total Current Liabilities 1,32,367.0 1,42,619.0 1,33,780.0 1,47,962.0 1,69,165.0

Net Working Capital (24,952.0) (32,133.0) (23,874.0) (23,037.0) (25,406.0)

Non Current Assets

Land 7,675.0 7,819.0 7,760.0 8,045.0 7,930.0
Building 32,665.0 35,537.0 36,466.0 38,674.0 40,584.0
Plant Machinery 1,24,158.0 1,38,868.0 1,48,585.0 1,53,672.0 1,51,878.0
Equipments - - - - -
Computers 3,054.0 3,172.0 3,383.0 3,499.0 3,667.0
Furniture n fittings 1,890.0 1,956.0 1,984.0 2,084.0 2,029.0
Vehicles 601.0 845.0 725.0 788.0 956.0
Intangible Assets 91,157.0 1,14,809.0 1,14,323.0 1,12,538.0 1,16,714.0
Other fixed assets 9,380.0 10,686.0 10,870.0 11,841.0 10,724.0
Gross Block 2,70,579.0 3,13,692.0 3,24,096.0 3,31,141.0 3,34,482.0
Accumulated Depreciation (1,43,471.0) (1,74,985.0) (1,85,241.0) (1,99,062.0) (2,13,197.0)
Net Non Current Assets 1,27,108.0 1,38,707.0 1,38,855.0 1,32,079.0 1,21,285.0

Invested Capital 1,02,156.0 1,06,574.0 1,14,981.0 1,09,042.0 95,879.0

EBIT (3,438.4) 8,740.7 (115.6) 6,955.4 32,268.2

ROIC -3.37% 8.20% -0.10% 6.38% 33.66%

Calculation of Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex 29,531.0 19,854.0 14,938.0 18,945.0 31,183.0

Change in Working Capital (7,181.0) 8,259.0 837.0 (2,369.0)

EBIT (3,438.4) 8,740.7 (115.6) 6,955.4 32,268.2

Marginal Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) (2,406.9) 6,118.5 (80.9) 4,868.8 22,587.7

Reinvestment 12,673.0 23,197.0 19,782.0 28,814.0

Reinvestment Rate 207.13% -28666.58% 406.30% 127.56%

4 Year Average -6981.40%

4 Year Median 167.35%

Calculation of Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Reinvestment Rate 207.13% -28666.58% 406.30% 127.56%

ROIC 8.20% -0.10% 6.38% 33.66%
Intrinsic Growth 16.99% 28.82% 25.92% 42.93%

4 Year Average 28.66%

4 Year Median 27.37%
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

FCFF
Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Mar-28F Mar-29F

EBIT 37940.9 48324.8 61550.7 78396.4 99852.5 127180.9

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 26558.6 33827.4 43085.5 54877.5 69896.8 89026.6
Less: Reinvestment Rate 167.35% 146.88% 126.42% 105.96% 85.50% 85.50%
Free Cash Flow to Firm (FCFF) -17886.0 -15859.6 -11384.3 -3271.4 10135.0 12908.9
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.947 0.850 0.762 0.684 0.613
PV of FCFF -15020.8 -9671.9 -2493.1 6928.4 7915.9

Expected Growth 27.37%

Terminal Growth 6.50%
WACC 11.48%

Calculation of Terminal Value Sensitivity Analysis

190116.1 10.00% 11.48% 12.00% 14.00%
FCFF (n+1) 16441.9 4.00% 1,55,698.7 1,22,450.1 1,13,688.7 88,482.6
WACC 11.48% 5.00% 1,89,306.7 1,43,251.3 1,31,693.0 99,685.3
Terminal Growth Rate 6.50% 6.50% 2,75,727.4 1,90,116.6 1,70,975.1 1,22,090.7
7.00% 3,23,738.9 2,12,712.3 1,89,306.7 1,31,693.0
Terminal Value 330157.0 8.00% 4,91,779.1 2,77,383.0 2,39,718.8 1,55,698.7

Calculation of Equity Value per Share Sensitivity Analysis

375.0 10.00% 11.48% 12.00% 14.00%
PV of FCFF -12341.491 4.00% 281.1 190.4 166.4 97.7
PV of Terminal Value 202457.5 5.00% 372.8 247.1 215.6 128.2
Value of Operating Assets 190116.1 6.50% 608.6 375.0 322.8 189.4
7.00% 739.7 436.7 372.8 215.6
Add: Cash 45806.7 8.00% 1,198.2 613.2 510.4 281.1
Less: Debt 98501.0
Value of Equity 137421.7
No. of Shares 366.45
Equity Value per Share 375.0

Share Price 990

Discount/Premium 2.64x
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Comps Valuation
Amount in Crores
Comparable Companies Valuation
Market Data Financials Valuation
Share Shares Equity Enterprise
Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/Revenue EV/EBITDA P/E
Tata Motors TATAMOTORS 990 332.40 3,28,993 61,456 3,90,449 4,37,928 60,912 31,807 0.9x 6.4x 12.3x
Ashok Leyland ASHOKLEY 242 293.64 71,029 33,722 1,04,751 45,791 8,101 2,696 2.3x 12.9x 38.8x
Olectra Greentec OLECTRAG 1,779 8.21 14,608 -54 14,554 1,154 186 79 12.6x 78.4x 185.0x
Force Motors FORCEMOT 8,965 1.32 11,834 76 11,910 6,992 936 388 1.7x 12.7x 30.7x
SML ISUZU SMLISUZU 2,099 1.45 3,043 373 3,415 2,196 185 108 1.6x 18.5x 31.7x
High 12.6x 78.4x 185.0x
75th Percentile 2.3x 18.5x 38.8x
Average 3.8x 25.8x 59.7x
Median 1.7x 12.9x 31.7x
25th Percentile 1.6x 12.7x 30.7x
Low 0.9x 6.4x 12.3x

Tata Motors Ltd. Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 7,45,946 7,87,598 10,68,435
Net Debt 61,456 61,456 61,456
Implied Market Value 6,84,490 7,26,142 10,06,979
Shares Outstanding 332.40 332.40 332.40
Implied Value per Share 2059.2 2184.5 3029.4
Source: The Valuation School, Screener.in Undervalued Undervalued Undervalued
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

VAR & Monte Carlo Simulation

Date Adj Close Return Sorted Returns Replication Simulated Returns Calculation of Value at Risk - Tata Motors Ltd. (Simulation)
04-02-1993 20.85 -0.958614778 0.672413832 1 -0.014872658
13-10-2021 503.77 4.435924772 0.204467068 2 0.002239508 Historical Approach
30-04-2020 92.67 0.405382897 0.193218178 3 -0.002891984 Mean 0.09%
20-05-2009 65.94 -0.615239059 0.188256666 4 -0.026234549 Std Deviation 2.89%
29-10-2019 171.39 0.167569417 0.167569417 5 0.013091547 Min -40.51%
27-10-2019 146.79 9.04328445 0.164367369 6 -0.017377592 Max 67.24%
19-02-1991 14.62 -0.954328121 0.152542473 7 0.04840412 CMP 992.45
02-02-2021 320.01 5.36274016 0.151645161 8 0.015344442
08-04-1992 50.29 0.733749661 0.147058741 9 0.019549503 Monte Carlo Simulation
29-10-2008 29.01 -0.46963157 0.141428578 10 -0.010026901 Mean 0.09%
18-05-2009 54.70 0.996025124 0.135909535 11 -8.32695E-05 Std Deviation 2.89%
04-12-2008 27.40 -0.258777355 0.132832994 12 -0.032463908 Min -12.41%
02-04-2009 36.97 -0.664116109 0.131388807 13 0.013702381 Max 10.14%
05-06-2020 110.07 2.183568777 0.124365478 14 0.028592993 CMP 992.45
03-11-2008 34.57 -0.32413992 0.123267472 15 -0.031267017
22-04-1992 51.15 0.178217561 0.122641252 16 -0.00825037 Percentile Confidence VAR % Stock Price VAR (INR)
24-02-1994 43.42 -0.704577978 0.122222007 17 -0.053855816 5.0% 95.0% -4.70% 1039.1 -46.7
02-03-2010 146.97 -0.607229006 0.122117351 18 -0.0038178 1.0% 99.0% -6.58% 1057.8 -65.3
07-10-2021 374.18 27.12633407 0.120368866 19 -0.056147309 0.5% 99.5% -7.37% 1065.6 -73.2
03-11-2000 13.30 -0.739669573 0.118293482 20 0.000268478 10% 90.0% -3.61% 1028.3 -35.9
15-04-2009 51.10 1.584302296 0.116398965 21 0.038885295
29-07-1993 19.77 -0.909826346 0.115151273 22 -0.022100349
11-01-2021 219.29 1.103842219 0.113550327 23 0.055127244
07-09-2009 104.23 1.277106154 0.113515618 24 0.002306353
13-04-2009 45.77 -0.749342848 0.111772631 25 0.014610594
05-02-2020 182.62 0.3172043 0.108931845 26 0.001517284
17-10-2019 138.64 2.505586117 0.108462456 27 0.049876643
24-03-1992 39.55 2.320140318 0.108433353 28 -0.054472988
24-07-2001 11.91 -0.841641527 0.108011578 29 -0.053535172
28-07-2009 75.22 1.562461285 0.107591617 30 -0.016733555
13-03-2009 29.35 0.225841249 0.107155075 31 0.003684906
11-06-2002 23.95 1.088530545 0.106609472 32 -0.022863073
14-03-2001 11.47 -0.843272324 0.10526331 33 0.015771947
23-01-2004 73.16 -0.013268595 0.104191345 34 -0.031751089
09-04-2020 74.14 -0.444733977 0.103550367 35 -0.017650282
11-09-2019 133.52 3.177853345 0.102133054 36 0.032125838
02-01-2009 31.96 1.460645651 0.101345084 37 0.075236207
22-10-2001 12.99 -0.96204008 0.100325605 38 0.01008291
10-09-2013 342.15 0.83762313 0.100062904 39 -0.020852991
01-04-2019 186.19 0.079827113 0.0985049 40 0.029688899
18-11-2020 172.43 -0.447879423 0.098101315 41 -0.053856396
14-08-2013 312.30 8.780276679 0.097129131 42 -0.021899153
 TATA MOTORS LTD
NSE: TATAMOTORS | BSE: 500570

Football Field Analysis

Football Field Analysis - Data

OpenLow Low OpenHigh High

Comps 2059.2 2059.2 3029.4 3029.4
DCF Bear 97.7 97.7 281.1 281.1
DCF Base 190.4 190.4 613.2 613.2
DCF Bull 281.1 281.1 1198.2 1198.2
52W H/L 585.0 585.0 1066.0 1066.0

Football Field Analysis - Valuation Summary (Rs)

3,500.0
₹ 3,029.42
3,000.0

2,500.0

2,000.0
₹ 2,059.24
1,500.0 ₹ 1,198.22
₹ 1,066.00
1,000.0 ₹ 613.15

500.0 ₹ 281.09
₹ 585.00
0.0 ₹ 281.09
Comps DCF Bear DCF Base DCF Bull 52W H/L
 TATA MOTORS LTD
(TATAMOTORS | BSE Code: 500570)
INR 922.85
52 Week (High - INR 1066 & Low - INR 585)

About the Company

Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata
group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world.

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

Financial Summary
Revenues (INR Crs.) Net Profit (INR Crs.) Total Assets (INR Crs.)

4,37,928 3,52,669

3,45,967
31,399
2,78,454
2,49,795 3,35,316
3,30,875 3,31,868

2,414

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

-11,441
-13,451

Return on Equity (%) Return on Asset (%) Financial Leverage

7.38x
6.72x
48.22% 8.90%
5.63x 5.42x

5.37% 0.73%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

-3.41%
-22.90% -22.93% -4.07%

Recent Updates
• Tata Motors PV sales suffered YoY decline in June 24 - Total sales stood at 2.29 lakh units in Q1 FY25.
• Auto giant Tata Motors announced a consolidated net profit of Rs 17,529 crore for the quarter ending March 31,
2024, making a significant 46% increase from the net profit of Rs 12.033 crore reported in the corresponding
period last year. The company surpassed Street estimates of Rs 6,225 crore.
• PAT likely to jump 33% YoY to Rs 7,640 crore on higher volume.
• Analysts anticipate robust results for Tata Motors, propelled by the advantages of operating leverage, favourable
commodity trends and strong volume growth across its various segments.
• Tata Motors drives Tata group companies' finances to new high in FY24 recording the consolidated net profit to
be up more than 1200% to Rs 32.203 crore from Rs 2,351 crore in FY23.
• June marked the third consecutive month of a YoY drop in sales of battery electric vahicles for market leader for
Tata Motors, which reported sales of 4,657 EVs last month.
Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Average Shareholder Equity 76,744.9 77,803.7 61,195.3 58,728.9 49,904.0 44,941.5 65,119.9
Return on Equity 11.71% -37.05% -19.73% -22.90% -22.93% 5.37% 48.22%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Revenue 2,91,550.5 3,01,938.4 2,61,068.0 2,49,794.8 2,78,453.6 3,45,967.0 4,37,927.8
Net Profit Margin (A) 3.08% -9.55% -4.62% -5.38% -4.11% 0.70% 7.17%

Revenue 2,91,550.5 3,01,938.4 2,61,068.0 2,49,794.8 2,78,453.6 3,45,967.0 4,37,927.8

Average Total Asset 2,99,886.1 3,16,447.7 3,12,941.4 3,30,874.7 3,35,315.7 3,31,868.0 3,52,669.2
Asset Turnover Ratio (B) 1.0x 1.0x 0.8x 0.8x 0.8x 1.0x 1.2x

Average Total Asset 2,99,886.1 3,16,447.7 3,12,941.4 3,30,874.7 3,35,315.7 3,31,868.0 3,52,669.2
Average Shareholder Equity 76,744.9 77,803.7 61,195.3 58,728.9 49,904.0 44,941.5 65,119.9
Equity Multiplier (C) 3.91x 4.07x 5.11x 5.63x 6.72x 7.38x 5.42x

Return on Equity (A*B*C) 11.71% -37.05% -19.73% -22.90% -22.93% 5.37% 48.22%

Return on Asset
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Average Total Asset 2,99,886.1 3,16,447.7 3,12,941.4 3,30,874.7 3,35,315.7 3,31,868.0 3,52,669.2
Return on Asset 3.00% -9.11% -3.86% -4.07% -3.41% 0.73% 8.90%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 8,988.9 -28,826.2 -12,070.9 -13,451.4 -11,441.5 2,414.3 31,399.1
Revenue 2,91,550.5 3,01,938.4 2,61,068.0 2,49,794.8 2,78,453.6 3,45,967.0 4,37,927.8
Net Profit Margin (A) 3.08% -9.55% -4.62% -5.38% -4.11% 0.70% 7.17%

Revenue 2,91,550.5 3,01,938.4 2,61,068.0 2,49,794.8 2,78,453.6 3,45,967.0 4,37,927.8

Average Total Asset 2,99,886.1 3,16,447.7 3,12,941.4 3,30,874.7 3,35,315.7 3,31,868.0 3,52,669.2
Asset Turnover Ratio (B) 1.0x 1.0x 0.8x 0.8x 0.8x 1.0x 1.2x

Return on Asset (A*B) 3.00% -9.11% -3.86% -4.07% -3.41% 0.73% 8.90%

Dupont Summary
• ROE of Tata Motors has been negative throughout the COVID pandemic centering around -20% for the next two
years till FY22 which now has shown a tremendous increase to 48.22% as of March 2024.
• The company faced a significant decrease in net margins but was able to increase the same gradually post the
COVID pandemic from -9.55% in FY19 to 7.17% in FY24. Asset efficiency of the company is constantly maintained
throughout the period.
• Tata Motors had a negative ROA of -9.11% in FY19 which has been increased gradually to 8.90% as of FY24. While
the asset efficiency remains constant, the reason for increase in ROA is increased net margin of the company.

Disclaimer: This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any losses
due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments
TATA MOTORS LTD
(TATAMOTORS | BSE Code: 500570)
INR 922.85
52 Week (High - INR 1066 & Low - INR 585)

Altman's Z Score Analysis

Financial Summary
Working Capital / Total Assets Retained Earnings / Total Assets EBIT / Total Assets

3.83% 3.81% 6.74%

8.71%
3.30%

2.00%

2.56%
2.08%

0.00% 0.00% 0.00%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024
-0.04%

Market Cap / Long Term Liabilities Sales / Total Asset Altman's Z Score

315.28%
118.15% Strong, 3.49
103.37%

84.62%
73.13%
Grey Zone,
Distressed, 1.85
Distressed, 1.57
113.42% 120.17%
1.35
81.31%

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024
Altman's Z Score Analysis Calculation
Working Capital / Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital 2,118.3 7,465.9 7,960.8 13,085.5 12,524.2 6,701.8 12,225.6
Total Assets 3,27,191.8 3,05,703.5 3,20,179.4 3,41,569.9 3,29,061.5 3,34,674.4 3,70,664.0
Working Capital / Total Assets (A) 0.65% 2.44% 2.49% 3.83% 3.81% 2.00% 3.30%

Retained Earnings / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings 880.4 - - - - - 24,984.3
Total Assets 3,27,191.8 3,05,703.5 3,20,179.4 3,41,569.9 3,29,061.5 3,34,674.4 3,70,664.0
Retained Earnings / Total Assets (B) 0.27% - - - - - 6.74%

EBIT / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
EBIT 9,904.1 1,073.7 -3,438.4 8,740.7 -115.6 6,955.4 32,268.2
Total Assets 3,27,191.8 3,05,703.5 3,20,179.4 3,41,569.9 3,29,061.5 3,34,674.4 3,70,664.0
EBIT / Total Assets (C) 3.03% 0.35% -1.07% 2.56% -0.04% 2.08% 8.71%

Market Cap / Long Term Liabilities

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Market Cap 1,11,001.6 59,177.1 25,561.8 1,15,561.1 1,66,100.9 1,61,170.5 3,38,175.6
Long Term Liabilities 88,950.5 1,06,175.3 1,24,787.6 1,42,130.6 1,46,449.0 1,34,113.4 1,07,262.5
Market Cap / Long Term Liabilities (D) 124.79% 55.74% 20.48% 81.31% 113.42% 120.17% 315.28%

Sales / Total Asset

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Total Sales 2,91,550.5 3,01,938.4 2,61,068.0 2,49,794.8 2,78,453.6 3,45,967.0 4,37,927.8
Total Assets 3,27,191.8 3,05,703.5 3,20,179.4 3,41,569.9 3,29,061.5 3,34,674.4 3,70,664.0
Return on Asset (E) 89.11% 98.77% 81.54% 73.13% 84.62% 103.37% 118.15%

Altman's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score 1.75 1.36 0.93 1.35 1.57 1.85 3.49
Financial Stability Distressed Distressed Distressed Distressed Distressed Grey Zone Strong

Disclaimer: This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for any
losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments