TATA Motors

Tata Motors Limited, part of the Tata Group, is a major Indian automotive company known for manufacturing a wide range of vehicles, including cars, SUVs, trucks, and buses. Established in 1945 and based in Mumbai, it serves customers in over 125 countries with manufacturing facilities in India and abroad. Tata Motors has a strong presence in commercial vehicles and is rapidly expanding in the passenger vehicle segment, especially electric vehicles like the Nexon EV and Tiago EV. Its British subsidiary, Jaguar Land Rover, adds significant value through luxury vehicles and a focus on electric mobility.

Company Insights
The company has a market capitalization of 2,48,407 crores
The share price of the company is 675
The book value of the company is 315
The company's debt-to-equity ratio is 0.62
The company's annual dividend yield is 0.89%
The company's stock P/E is 8.80
The earnings per share are 75.6
The company's ROCE is 20.0%

Financial Report
The company's sales in the last 5 years
Sales in 2021 is 2,49,795 crores
Sales in 2022 is 2,78,454 crores
Sales in 2023 is 3,45,967 crores
Sales in 2024 is 4,34,016 crores
Sales in 2025 is 4,39,695 crores

The company's profit in the last 5 years
Profit in 2021 is -13,395 crores
Profit in 2022 is -11,309 crores
Profit in 2023 is 2,690 crores
Profit in 2024 is 31,807 crores
Profit in 2025 is 28,149 crores

Sales & Profit Growth
The company's sales growth in the last 5 years
Sales growth in the last 5 years is 11.0%
Sales growth in the last 3 years is 16.4%
Sales growth in the last 1 year is 1.31%

The company's profit growth in the last 5 years
Profit growth in the last 5 years is 37.4%
Profit growth in the last 3 years is 65.5%
Profit growth in the last 1 year is -12.2%

Holdings
Promoters are 42.58%
FIIs are 17.84%
DIIs are 16.88%
Government are 0.31%
Public are 22.39%

Company News

• Tata Motors shares fell sharply by around 5-6% in mid-June 2025 after its luxury arm, Jaguar Land Rover (JLR), revised down its earnings margin outlook for the financial year 2026. JLR now expects its EBIT margin to be between 5% and 7%, significantly lower than the 8.5% margin reported last year and the earlier target of 10%. This downgrade has raised concerns about Tata Motors' profitability and cash flow, with JLR projecting free cash flow to be close to zero in FY26, down from £1.5 billion last year.

• Despite these challenges, JLR maintained its leadership in the premium vehicle segment in May and is looking to expand in China by licensing the Freelander model to its joint venture there, with the first units expected in the second half of the current financial year. Tata Motors continues to engage with trade authorities to reduce tariffs, benefiting from the recent UK-US trade deal that will lower auto export tariffs from 27.5% to 10%, although some tariffs remain high on other markets like Slovakia.

• Analysts have mixed views on Tata Motors’ stock. Morgan Stanley maintains a cautious "Equal-weight" rating with a modest upside target, while Jefferies and Nuvama Institutional Equities have downgraded the stock citing margin pressures, weak demand in key markets, and rising competition in electric vehicles. Tata Motors’ consolidated revenue showed only slight growth, reflecting ongoing industry headwinds.

• On the positive side, Tata Motors is actively promoting its electric vehicle lineup with attractive offers in June 2025 to boost sales. The company is also focused on long-term goals to improve margins and cash flow by 2027-28, aiming to eventually restore JLR’s EBIT margin to 10%, though no specific timeline has been given.

Technical Analysis

Company Chart

Moving Averages (MA)

• The stock price is under the 50-MA, which indicates that the stock is in a downtrend.

• The stock price is under the 200-MA, which also indicates that the stock is in a downtrend.

Relative Strength Index (RSI)

The current RSI of the stock is 38, which indicates that the stock is neither in the overbought nor in the oversold zone.

My Analysis

The company's sales and profit growth have been good in the last few years. It started to post profits over the last 3 years. The company is focusing more on electric vehicles to achieve net-zero carbon emissions by 2040. The stock price is seen a decline from its all time high and now it started to move upward again.