Tata Motors Share Price – Analysis & History

Introduction 

 

Tata Motors is a manufacturing company that is a part of the Tata Group with its headquarters in Mumbai, India. The company manufactures passenger cars, trucks, vans, buses, coaches, luxury, and sports automobiles. 

 

The business was established in 1945 as a producer of locomotives and was formerly known as Tata Engineering and Locomotive Company (TELCO). In 1954, the business produced its first commercial vehicle as part of a partnership with Daimler-Benz AG that lasted until 1969. Tata Motors became the first Indian company to build a competitive domestic automobile when it introduced the TataMobile in 1988, followed by the Tata Sierra in 1991, and so entered the passenger vehicle market. Tata introduced the Indica, the world’s first wholly indigenous Indian passenger automobile, in 1998. The Tata Nano, the world’s cheapest car, was introduced in 2008. In 2004, Tata Motors purchased Daewoo Commercial Vehicles Company, a South Korean maker of trucks. Since the firm created it for the 2008 acquisition of Jaguar Cars and Land Rover from Ford, Tata Motors has served as Jaguar Land Rover’s parent company.

 

 

The two main subsidiaries of Tata Motors are the South Korean commercial vehicle producer Tata Daewoo and the British luxury car manufacturer Jaguar Land Rover (which produces the Jaguar and Land Rover automobiles). Tata Motors has joint ventures with Stellantis that produce automotive parts and automobiles with the Fiat Chrysler and Tata brands, as well as a joint venture with Hitachi that manufactures construction equipment. The electric vehicle division of Tata Motors received a $1 billion investment from private equity firm TPG on October 12, 2021. In addition to having auto production and vehicle plants in Argentina, South Africa, the United Kingdom, and Thailand, Tata Motors also has them in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune. It has facilities for research and development in South Korea, the UK, Spain, Jamshedpur, Lucknow, and Pune in India. Tata Motors is traded on the National Stock Exchange of India, the New York Stock Exchange, and the BSE (Bombay Stock Exchange), where it is a part of the BSE SENSEX index. On the 2019 Fortune Global 500 list of the largest corporations in the world, the company is rated 265th. 

 

Natarajan Chandrasekaran was named chairman of the Tata Group on January 17.

 

History Of Tata Motors

 

In 1945, Tata Motors was established as a producer of locomotives. In 1954, the Tata Group launched a joint venture with German automaker Daimler-Benz to enter the commercial vehicle market. Tata Motors joined the passenger car market in 1991 with the release of the Tata Sierra, a sport utility vehicle based on the Tata Mobile platform, after dominating the commercial vehicle industry in India for years. The Tata Estate, a station waggon based on the older Tata Mobile, the Tata Sumo, a 5-door SUV, and the Tata Safari were all later introduced by Tata (1998).

 

Tata introduced the Indica in 1998, a totally indigenous Indian passenger automobile that was designed by I.D.E.A., Italy, but was specifically developed to meet Indian market needs. Its outstanding fuel economy, powerful engine, and aggressive marketing made it one of the best-selling automobiles in the history of the Indian automobile industry—despite initial criticism from auto pundits. The Indica V2 was a much-improved version of the vehicle that replaced the previous model and soon gained popularity. Large quantities of the vehicle were also successfully exported by Tata Motors to South Africa. Tata Motors expanded significantly as a result of the Indica’s popularity. Daewoo Commercial Vehicles Company, a South Korean truck manufacturing division of Daewoo that was later renamed Tata Daewoo, was purchased by Tata Motors in 2004. Ratan Tata, the then chairman of Tata Motors, rang the New York Stock Exchange’s opening bell on September 27, 2004, to commemorate Tata Motors’ listing. Tata Motors purchased a 21% controlling stake in Hispano Carrocera, a Spanish bus and coach maker, in 2005. Through the release of new goods such as trucks and buses (Starbus and Globus, jointly produced with subsidiary Hispano Carrocera), Tata Motors continued to expand its market area (Novus, jointly developed with subsidiary Tata Daewoo). Tata and Brazil-based Marcopolo established Tata Marcopolo Bus as a joint venture in 2006 to produce fully assembled buses and coaches.

 

The English automaker Jaguar Land Rover, which makes the Jaguar and Land Rover, was purchased by Tata Motors in 2008 from Ford Motor Company. The Tata World Truck line, created in partnership with Tata Daewoo, was debuted in May 2009; by the end of the year, it was available for purchase in South Korea, South Africa, and the SAARC nations, and the Middle East. In 2009, Tata fully bought Hispano Carrocera. The Rajiv Gandhi National Quality Award for “Best of All” was given to its Lucknow factory in 2009. For €1.85 million in 2010, Tata Motors purchased 80% of the Italian design and engineering firm Trilix.  Tata Motors said in 2012 that it would work with DRDO to develop futuristic infantry combat vehicles with an estimated $6 billion investment. In 2013, Tata Motors announced that it would market the “Mini CAT,” the world’s first vehicle to run on compressed air. The Mini CAT’s engines were created by the French company MDI. The “T1 Prima Truck Racing Championship” was first held in India in 2014 thanks to Tata Motors. At the Shangri-La Hotel in Bangkok, where he was scheduled to attend a meeting of Tata Motors Thailand, he fell from the 22nd floor to the fourth level. 

 

In order to promote and endorsing passenger automobiles globally, Tata Motors announced Lionel Messi as their global brand ambassador on November 2, 2015, in New Delhi. In order to create automobiles for India’s home market, Volkswagen and Tata Motors have inked a memorandum of understanding In order to maximise the potential of its aerospace and defence businesses, Tata Motors stated on May 3rd that it has sold them to Tata Advanced Systems, another Tata Group Entity. On March 24, 2020, Tata Motors Ltd. declared that it would divide its passenger vehicle division into a new business unit. Tata Motors’ shareholders agreed to spin off its passenger vehicle division into a different company on March 5, 2021. The firm intended to recognise the efforts by giving away an Altroz hatchback in August 2021 as a gratis incentive for Indian Olympians who came in a close fourth place at the Tokyo Olympics 2021 and missed the position for Bronze. Tata Motors stated on August 23, 2021, that it would introduce its small SUV Punch during the current holiday season. On May 30, 2022, Tata Motors revealed that it had inked a contract to buy a Ford India production facility in Sanand, Gujarat. For the manufacturing facility, Tata Motors agreed to pay 7.26 billion rupees ($91.5 million). 

 

Top Shareholders of Tata Motors Shares

 

Below is a list of top shareholders of Tata Motors Share as on 11 August 2022.

Stock Name
Tata Sons Pvt Ltd. 1,527,401,973 46.0%
Life Insurance Corporation of India (Investment Portfolio) 164,709,306 4.96%
The Vanguard Group, Inc. 46,054,537 1.39%
SBI Funds Management Pvt Ltd. 43,089,193 1.30%
Jhunjhunwala Rakesh Radheshyam 36,250,000 1.09%
BlackRock Fund Advisors 35,582,144 1.07%
Nippon Life India Asset Management Ltd. (Invt Mgmt) 29,920,298 0.90%
HDFC Asset Management Co. Ltd. (Invt Mgmt) 27,986,736 0.84%
UTI Asset Management Co. Ltd. (Investment Management) 22,941,495 0.69%
Dimensional Fund Advisors LP 22,226,231 0.67%

 

Management of Tata Motors 

 

Below is a list of top management of Tata Motors Share as on 11 August, 2022

 

Name Title Age Since
Thomas Flack Co-President & Chief Purchasing Officer
Rajendra Petkar Co-President & Chief Technology Officer
Ravindra Kumar G.P Co-President & Chief Human Resources Officer 2018
Pathamadai B. Balaji Group Chief Financial Officer 52 2017
Maloy Kumar Gupta Secretary & Compliance Officer
Dhiman Gupta Head-Treasury & Investor Relations
Sibendra Nath Barman Vice President-Sales & Network 59 2015
Shubhranshu Singh VP-Domestic & International Business Marketing 2021
Ramakrishnan Ramanathan Senior Vice President-Product Strategy & Planning 48
Rajesh Khatri Head-Manufacturing Operations 2017

 

Key Highlights From Tata Motors Latest Quarterly Results – Q1 FY 23

 

  • EBITDA at 7.4% (- 90 bps).

 

  • EBIT at -0.7% (+60 bps).

 

  • Consolidated Revenue of 71.9KCr, up 8.3%.

 

  • JLR Revenue of £ 4.4 billion was down 11.3%, with EBITDA at 6.3% (-270 bps) and EBIT at -4.4%. (-350 bps)

 

  • Tata CV reported revenue of 16.3 KCr, an increase of 107.2%, EBITDA at 5.5%, and EBIT at 2.8%. 

 

  • Tata PV reported revenue of 11.6 KCr, up 122.5%, with an EBITDA of 6.1% and an EBIT of 0.9%, respectively.

 

  • JLR, or Jaguar Land Rover: Retail sales in Q1 FY23 were 78,825 automobiles, down 37% from Q1 FY22 and essentially unchanged from Q4 FY22. Revenue decreased 7.6% from Q4 FY22 to £4.4 billion in Q1 FY23 due to supply issues, including semiconductor shortages, a slower-than-expected ramp-up in the manufacturing of the New Range Rover and New Range Rover Sport, and Chinese lockdowns. 

 

  • The number of automobiles in the client order book increased to 200,000. Prior to a favourable unusual pension item of £155 million, the loss before taxes for the quarter was £524 million. The loss is principally attributable to decreased wholesale volumes with a worse mix, unfavourable inflation of £(161) million, as well as a £(236) million revaluation of currencies and commodities year over year. As a result of the decreased volumes and unfavourable mix, the EBIT margin was (4.4)%. Free cashflow was negative for the quarter in the amount of £(769) million, principally due to unfavourable working capital movements in the amount of £(616) million.

 

  • When compared to Q1 FY22, the Tata Commercial Vehicles (Tata CV) segment saw significant volume growth (a Covid impacted quarter). There was widespread growth in all areas and market segments during Q1 FY23. Domestic wholesales for the India market were 95,895 automobiles (+124% yoy). However, exports were only 5,218 automobiles, down 22.6% as a result of the financial crisis in a small number of export countries. Increased volumes, realisations, and steady commodity prices all contributed to the margin improvement.

 

  • Tata Passenger Vehicles (Tata PV): Tata PV sales reached 130,351 vehicles in wholesales, an increase of 101.7% from Q1 FY22. Even though the supply side was only mildly impacted, demand for passenger cars remained high in Q1 FY23. 68% of Q1 FY23 sales were attributed to the SUV portfolio. Strong volumes, an improved mix, and the effects of enhanced operating leverage were the main drivers of margin growth.

 

  • Outlook: Despite concerns about inflation and geopolitical issues, we anticipate that demand will stay robust and that the supply situation will continue to improve. It is anticipated that declining commodity costs will help underlying margins improve. Our goal is to achieve near net car debt freedom by FY 24 with significant increases in EBIT and free cash flow starting in Q2.

 

Key Highlights From LAND ROVER, JAGUAR (JLR) (Tata Motors Subsidiary) Q1 FY 23 

 

  • Constraints on manufacturing due to semiconductors are made worse by the New Range Rover and Range Rover Sport’s production ramp-up taking longer than anticipated.

 

  • Chinese Covid-19 lockdowns also had an effect on the quarter’s production and sales.

 

  • While wholesales were 6% down from Q4 to Q1, retail sales were flat.

 

  • Loss before taxes of £524 million, less a one-off pension benefit of £155 million but includes a yearly revaluation of £236 million in foreign exchange and commodities.

 

  • With 200,000 client orders, demand is at an all-time high. More than 60% of client orders are for Range Rover, Range Rover Sport, and Defender.

 

  • Chip supply is anticipated to steadily improve, and for the remainder of the fiscal year ending March 31, 2023, considerable increases in volumes and profitability are predicted.

 

  • 3.7 billion in cash at June 30, 2022, and £1.5 billion in undrawn revolving credit facility as of July. Strong liquidity of £5.2 billion.

 

  • Reimagine, Tata’s plan to provide customers with the future of contemporary luxury and reach net zero carbon emissions across supply chain, goods, and operations by 2039, is moving very quickly.

 

  • To revamp worldwide purchasing, supply chain, and manufacturing operations, Barbara Bergmeier has been named Executive Director of Industrial Operations.

 

  • In addition to the £1.5 billion delivered in FY22, the Refocus transformation initiative added £250 million in value in Q1, and it is on course to meet its target of $1 billion in improvements for the year to help offset the effects of inflation.

 

  • £2.6 billion in investment spending is scheduled for the entire year to implement our Reimagine product objectives, including the quick electrification of the product line.

 

  • Six new Range Rover, Defender, and Discovery models will be released by the end of 2026, including the Range Rover BEV, which will debut in 2024.

 

  • Jaguar’s transition to an all-electric luxury brand is proceeding as planned, and the first new vehicles will be unveiled by the end of 2024.

 

  • Plans are being made to achieve our challenging SBTi-approved 2030 targets to cut greenhouse gas emissions by 46% across all of our businesses and by 54% across our value chain per car.

 

  • Over the course of the year, financial performance is anticipated to dramatically improve, and chip supply is anticipated to do so because to improved supplier engagement, long-term cooperation agreements, and the expansion of New Range Rover and Range Rover Sport manufacturing. JLR still aim to generate £1 billion in positive free cash flow and a 5% EBIT margin in FY23. Short- and long-term financial goals under the Reimagine strategy, supported by the Refocus transformation programme, remain the same. These goals include raising EBIT margins to 10% or more by FY26 and raising free cash flow to achieve close to zero net debt by FY24.

 

Conclusion 

 

Tata Motors is one of the oldest motor vehicles companies in India. It has a global presence and own marquee brands like Jaguar and Land Rover. Its stock is considered as a bluechip stock. Tata Motors share has generated a lot of wealth for its investors and it has provided decent returns historically. It is important to note here that historic returns do note guarantee future returns and investment in stock market is subject to market risk.

 

FAQ

 

  • What is Tata Motors share price and what are the returns for Tata Motors share ?

 

Tata Motors share price is INR 428.10 as 21 September, 2022. Tata Motors have provided a return of approximately 39.04% in past 1 year as on 21 September, 2022.

 

  • What is the 52-week high and low of Tata Motors Share ?

 

As on 21 September, 2022: 

52-wk high : 536.50 & 52-wk low: 293.05

 

  • What are the key metrics to analyse Tata Motors Share Price?

 

Key metrics to analyze any share price are: 52-week high, 52-week low, 1 year return, 5 year return, etc. 

 

  • Who are the peers of Tata Motors Share ?

 

Peers of Tata Motors include Maruti Suzuki, Mahindra, etc.

 

  • What is the market cap of Tata Motors Stocks ?

 

Market cap of Tata Motors is 1.60 Lakh Crore as on 21 September, 2022.

 

 

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