Tata Motors Limited
Tata Motors Limited Fundamental Analysis
Tata Motors Limited (TATAMOTORS.BO) shows strong financial fundamentals with a PE ratio of 7.91, profit margin of 4.87%, and ROE of 35.34%. The company generates $4584.8B in annual revenue with strong year-over-year growth of 25.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TATAMOTORS.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTATAMOTORS.BO demonstrates superior asset utilization.
Valuation Score
ExcellentTATAMOTORS.BO trades at attractive valuation levels.
Growth Score
ExcellentTATAMOTORS.BO delivers strong and consistent growth momentum.
Financial Health Score
ModerateTATAMOTORS.BO shows balanced financial health with some risks.
Profitability Score
WeakTATAMOTORS.BO struggles to sustain strong margins.
Key Financial Metrics
Is TATAMOTORS.BO Expensive or Cheap?
P/E Ratio
TATAMOTORS.BO trades at 7.91 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TATAMOTORS.BO's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Tata Motors Limited at 17.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.75 times EBITDA. This is generally considered low.
How Well Does TATAMOTORS.BO Make Money?
Net Profit Margin
For every $100 in sales, Tata Motors Limited keeps $4.87 as profit after all expenses.
Operating Margin
Core operations generate 1.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $35.34 in profit for every $100 of shareholder equity.
ROA
Tata Motors Limited generates $49.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tata Motors Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Tata Motors Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
TATAMOTORS.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.35
vs 25 benchmark
ROA
Return on assets percentage
0.49
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How TATAMOTORS.BO Stacks Against Its Sector Peers
| Metric | TATAMOTORS.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.91 | 24.97 | Better (Cheaper) |
| ROE | 35.34% | 1167.00% | Weak |
| Net Margin | 4.87% | 673.00% | Weak |
| Debt/Equity | 0.88 | 0.66 | Weak (High Leverage) |
| Current Ratio | 0.63 | 4.01 | Weak Liquidity |
| ROA | 49.34% | -8477.00% (disorted) | Strong |
TATAMOTORS.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tata Motors Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.05%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
196.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
218.43%
Industry Style: Cyclical, Growth, Discretionary
High Growth