Mehabe score: 5 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
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. Site:TATAMOTORS Main Symbol:TATAMOTORS
Stock trades at 518.0, above its 50dma 484.31. It also trades above its 200dma 394.58. The stock remains bullish on techicals
The 52 week high is at 536.70 and the 52week low is at 255.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 3.85 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.76% over past five years.
– has a low return on equity of -27.49% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 239.0x. Tata Motors trades at the industry’s max P/E of 239.02x. TATAMOTORS trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. TATAMOTORS has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Tata Motors-DVR: a return of 8.92 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 61379.0 cr compared to Rs 53530.0 cr for period ended Sep 2020, a rise of 14.7% .
vis-vis 6098.0 for period ended Sep 2020 .
Operating Margins contracted -468.4 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 4117.0 cr for period ended Sep 2021 and operating profit margin at 6.7 % for same period.
The EPS for quarter ended Sep 2021 is Rs -13.38 compared to Rs -13.41 for previous quarter ended Jun 2021 and Rs -1.02 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 292067.0 cr for period ended TTM vis-vis sales of Rs 249795.0 cr for the period ended Mar 2021, a healthy growth of 14.5%. The 3 year sales cagr stood at -1.1%.
Operating margins shrank to 12.0% for period ended TTM vis-vis 13.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs -13591.0 cr for period ended TTM vis-vis sales of Rs -13451.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 29001.0 cr for period ended Mar 2021 vis-vis Rs 26633.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -23.0% compared to -27.0% over the last 3 Years. – The stock has given a return of 97% on a 1 Year basis vis-vis a return of 42% over the last 3 Years. – The compounded sales growth on a TTM bassis is 33% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 22% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 14.57% vis-vis 13.35% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 25.24% vis-vis 26.8% for Sep 2021
Conclusion
– is expected to give good quarter – Stock is trading at 3.85 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -1.76% over past five years.
– has a low return on equity of -27.49% for last 3 years.
– might be capitalizing the interest cost
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 484.31 and is trading at 518.0, thus bullish price action wise.
