Tata Motors Ltd. is one of India's leading automotive manufacturers, known for producing a wide range of vehicles and being the parent company of Jaguar Land Rover. Let's take a closer look at the company's key financial metrics and recent performance.
Market Cap and Enterprise Value:
As of the latest available data, Tata Motors has a market capitalization of ₹18,782.45 Cr. and an enterprise value of ₹36,240.24 Cr. Market capitalization represents the total value of all outstanding shares of the company in the stock market, while enterprise value includes the company's market cap along with its debt and cash position.
Share Details:
The company has 50.89 Cr. outstanding shares with a face value of ₹2 each. Notably, the promoter holding stands at 7.67%.
Profitability Metrics:
Tata Motors' Price-to-Earnings ratio (P/E) is currently at 0, indicating that the company is reporting negative earnings per share (EPS) based on its trailing twelve months (TTM) data. On the other hand, the Price-to-Book ratio (P/B) is 184.53, suggesting the stock is trading at a significantly higher valuation compared to its book value per share.
Financial Performance:
Over the past five years, Tata Motors has shown mixed sales and profit growth figures. While the sales growth for the last year is positive at 39.13%, the company faced challenges with revenue growth over the past three and five years, which were at 14.39% and 2.58% respectively. However, the profit growth has been more impressive, recording a significant 256.86% growth over the past year, 33.41% over the past three years, and 35.9% over the past five years.
Return on Equity (ROE) and Return on Capital Employed (ROCE):
Tata Motors' ROE and ROCE have been fluctuating over the years. As of the last available data, the ROE was at 12.90%, indicating the company's ability to generate profit relative to its shareholders' equity. On the other hand, the ROCE stood at 7.81%, signifying the company's operational efficiency in utilizing its capital.
Cash Flow and Debt:
The company's cash position is ₹1,414.65 Cr., which indicates a reasonable level of liquidity. However, it's essential to note that Tata Motors has a substantial debt of ₹18,872.44 Cr., which can impact its financial flexibility and interest payments.
Quarterly Results:
The latest available quarterly results indicate an increasing trend in net sales over the past year, reaching ₹20,142.13 Cr. in the most recent quarter. Operating profit also showed a similar upward trend, reaching ₹2,054.66 Cr. in the last quarter.
Super Investors:
Tata Motors has drawn the attention of renowned investor Rakesh Jhunjhunwala, who holds a significant value of ₹1,928.51 Cr. in the company's shares as of June 2023.
Conclusion:
Tata Motors, with its diverse portfolio of automotive products, has experienced mixed financial performance over the years. While the company demonstrated robust profit growth, its revenue growth has been somewhat limited. Additionally, the significant debt level and low-interest cover ratio are areas of concern. Investors should closely monitor the company's financial performance and market dynamics before making investment decisions in Tata Motors shares. As with any investment, it's essential to conduct further research and seek professional financial advice.
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