3. ABOUT
THE
COMPANY
Type: Public.
Industry: Automotive.
Founded: 1945, J. R. D.Tata.
Headquarters: Mumbai, Maharashtra, India.
Chairman: Cyrus Pallonji Mistry.
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4. PRODUCTS
• Small CommercialVehicles(SCVs) – 1 ton
• Pickups – 2 ton
• Light CommercialVehicles(LCVs) – 2.25-
7 ton
• UtilityVehicles
• Premium and Luxury SUVs
• Medium & Heavy CommercialVehicle
(M&HCV) – 15-42 ton
• Vans
• Buses and Coaches
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5. THE TATA TLA TATA 407 WATER TRUCK TATA MOTORS TRUCKS
A TATA STARBUS TATA SEMI-FORWARD
CAB 1210SE TRUCK
TATA TWIN-AXLE LORRY
PRODUCTS
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6. INDUSTRY
ANALYSIS
Although the economic growth vulnerability and lower sentiment
resulted in market slowdown in 2012 and 2013, India is expected to
regain strong growth trend 2014 onward.
Strong growth in demand due to rising income, rise of the middle
class, and an expanding young population is likely to make India
the third largest automotive market in the world by 2016, ahead of
Japan,Germany, and Brazil.
Apart from supportive government policies, India has significant
cost advantages in terms of manufacturing, along with availability
of a large pool of skilled manpower and a growing technology
base, to attract greater investments.
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7. Position of
the company
in its industry
Tata Motors Limited is India's largest automobile company, with
consolidated revenues of INR 2, 62,796 crores (USD 42.04 billion) in
2014-15. It is the leader in commercial vehicles in each segment, and
among the top in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments.
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8. GROWTH
PROSPECTS
With its global growth strategy in place and strong cash flows, future
prospects hinge purely on sales volumes, which will drive revenue and
profit margins
The September-quarter performance ofTata Motors Ltd may have
initially unsettled investors as the consolidated revenue and net profit
fell widely short of expectations.
According to a report by Religare Capital Markets, the answer to
higher profitability lies in JLR’s product and geographical mix. JLR’s
September-quarter net sales rose by a marginal 4%.
Still, what is keeping the street upbeat on growth prospects is higher
sales volume expected from fiscal 2016 both at JLR and the domestic
entity. JLR will clock higher sales as new products are launched and
the China facility starts spewing volumes. Higher volumes will,
therefore, sustain profit margins, though some quarters may see
moderation on account of marketing spends.
JLR’s meteoric performance has translated into strong returns for the
investor. From lastApril till date, the stock has returned nearly 25%,
although it has lagged the BSE Auto index.
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9. RATIO
ANALYSIS
1. EPS = (Earnings Available for Common Stockholder’s / Number of
Shares of Common Stock Outstanding)
= (1398629 / 32196.80)
= 43.44
2. P/E =(Market Price per Share of Common Stock / Earnings per
Share)
= (544.12 / 43.44)
= 12.52
3. NP= (Net Profit after Taxes / Sales) * 100
= ((13986.29/266345.25)*100)
= 5.25
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10. RATIO
ANALYSIS
4. Debt equity ratio = (Long-Term Debt / Stockholders’ Equity)
= (14709.95/14862.59)
= 0.9897
5. DuPont = Net Profit Ratio * Assets Turnover Ratio * [ 1+ Debt
Equity Ratio]
= (Net Profit after Tax/ Sales) * 100 *Sales / Assets* [1+Long-
Term Debt / Stockholders’ Equity]
= (28.004)*(1.9897)
= 55.7195588
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12. Stock chart
analysis
Tata Motors gained 0.18% to Rs 586 at 12:35 IST on BSE after total sales
rose 5% to 42,582 vehicles in January 2015 over January 2014.
Meanwhile, the S&P BSE Sensex was down 206.02 points or 0.71% at
28,976.93.
On BSE, so far 1.19 lakh shares were traded in the counter as against
average daily volume of 4.39 lakh shares in the past one quarter.
The stock hit a high of Rs 589.50 and a low of Rs 581.65 so far during the
day.The stock had hit a record high of Rs 608.40 on 27 January 2015.The
stock had hit a 52-week low of Rs 331.05 on 4 February 2014.
The company's domestic sales of commercial vehicles remained flat.
Light commercial vehicles (LCV) sales fell 18% 14,301 units, while medium
and heavy commercial vehicles (M&HCV) sales continued to show growth
with sales growth of 38% at 11,273 units in January 2015 over January
2014.
Tata Motors' consolidated net profit fell 7.1% to Rs 3290.86 crore on 6.5%
rise in total income to Rs 60809.13 crore in Q2 September 2014 over Q2
September 2013.
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13. Stock chart
analysis
The stock had outperformed the market over the past one month till
30 January 2015, gaining 18.43% compared with Sensex's 6.49% rise.
The scrip had also outperformed the market in past one quarter, rising
11.12% as against Sensex's 6.72% rise.
The large-cap automobile manufacturer has equity capital of Rs
547.34 crore. Face value per share is Rs 2.
Tata Motors' domestic sales ofTata commercial and passenger
vehicles rose 5% to 36,657 vehicles in January 2015 over January 2014.
While market continues to remain challenged by macroeconomic
trends, besides positive growth in segments such as M&HCV and
passenger cars, exports have grown by 4% in January 2015 over
January 2014. Exports rose 4% to 3,961 units in January 2015 over
January 2014.
Tata Motors' passenger vehicles recorded sales growth of 19% to
13,047 units in January 2015 over January 2014.The trend of growth in
passenger vehicles continued - with the strong Zest sales and the
good response to the all-new Bolt.While the sales of the passenger
cars rose 38% at 11,637 units, the utility vehicles (UV) sales declined by
44% at 1,410 units in January 2015 over January 2014.
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