Following the automaker’s global wholesales statistics, a number of brokerages upgraded the stock of the Tata group, sending shares of Tata Motors up 8% on Monday. Tata Motors stated in a news release that its worldwide wholesales, which includes Jaguar Land Rover, increased 8% YoY to 3,61,361 vehicles in the March quarter.
Recovery of Tata Motors
“Tata Motors’ three businesses are all in a recovery mode. The India PV sector is seeing a structural rebound, while the India CV business will experience a cyclical recovery. JLR is likewise seeing cyclical growth that is being aided by a positive product mix. The recovery effort will be hampered, nevertheless, by supply-side problems. While the JLR business won’t provide any immediate catalysts, the India business will continue to recover.
The company is trading at 13.7 times its expected FY25 consolidated EPS and 16.9 times its estimated FY24 consolidated EPS, according to Motilal Oswal Securities. The company gets a ‘Buy’ recommendation from the firm with a Rs 525 price objective.
According to Tata Motors, global wholesale sales of passenger cars reached 1,35,654 units in the March quarter, an increase of 10% year over year. 1,07,386 automobiles were sold through Jaguar Land Rover’s global wholesales. (including CJLR volumes of 12,737 units). According to Tata Motors’ press announcement, Land Rover wholesales for the quarter were 91,887 automobiles, compared to 15,499 vehicles for Jaguar.
Domestic Sales
Earlier, Tata Motors said that its domestic CV volume for March was 45,307 units, an increase of 2% year over year, driven by stronger MHCV sales while LCV sales fell year over year. To 44,044 units, PV increased 4% YoY, in line with industry trends. Exports as a whole decreased by 39% year over year. With 6,509 units sold, EV sales made up 15% of all PV volume in March. PV sales increased by 46% YoY in FY23, while CV sales increased by 22%. MHCV sales increased by 35% YoY, while LCV sales increased by 10% YoY.
Let us look at the Fundamentals
Profit & Loss
Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS
| Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 122,128 | 165,654 | 188,793 | 232,834 | 263,159 | 273,046 | 269,693 | 291,550 | 301,938 | 261,068 | 249,795 | 278,454 | 318,474 |
| Expenses + | 105,541 | 143,439 | 164,197 | 197,980 | 223,920 | 234,650 | 240,104 | 260,093 | 277,274 | 243,081 | 217,507 | 253,734 | 291,386 |
| Operating Profit | 16,586 | 22,215 | 24,596 | 34,853 | 39,239 | 38,395 | 29,589 | 31,458 | 24,664 | 17,987 | 32,287 | 24,720 | 27,088 |
| OPM % | 14% | 13% | 13% | 15% | 15% | 14% | 11% | 11% | 8% | 7% | 13% | 9% | 9% |
| Other Income + | 891 | -74 | 213 | -157 | 714 | -2,670 | 1,869 | 5,933 | -26,686 | 102 | -11,118 | 2,424 | 5,051 |
| Interest | 2,385 | 2,982 | 3,560 | 4,749 | 4,861 | 4,889 | 4,238 | 4,682 | 5,759 | 7,243 | 8,097 | 9,312 | 9,964 |
| Depreciation | 4,656 | 5,625 | 7,601 | 11,078 | 13,389 | 16,711 | 17,905 | 21,554 | 23,591 | 21,425 | 23,547 | 24,836 | 24,242 |
| Profit before tax | 10,437 | 13,534 | 13,647 | 18,869 | 21,703 | 14,126 | 9,315 | 11,155 | -31,371 | -10,580 | -10,474 | -7,003 | -2,068 |
| Tax % | 12% | -0% | 28% | 25% | 35% | 21% | 35% | 39% | 8% | -4% | -24% | -60% | |
| Net Profit | 9,322 | 13,599 | 9,976 | 14,050 | 14,073 | 11,678 | 7,557 | 9,091 | -28,724 | -11,975 | -13,395 | -11,309 | -3,798 |
| EPS in Rs | 32.66 | 47.60 | 34.62 | 48.46 | 48.44 | 40.11 | 25.82 | 31.13 | -99.84 | -39.08 | -40.51 | -34.46 | -12.12 |
| Dividend Payout % | 14% | 9% | 6% | 5% | 0% | 1% | 0% | 0% | 0% | 0% | 0% | 0% |
| Compounded Sales Growth | |
|---|---|
| 10 Years: | 5% |
| 5 Years: | 1% |
| 3 Years: | -3% |
| TTM: | 10% |
| Compounded Profit Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | % |
| TTM: | -8% |
| Stock Price CAGR | |
|---|---|
| 10 Years: | 5% |
| 5 Years: | 4% |
| 3 Years: | 80% |
| 1 Year: | -3% |
| Return on Equity | |
|---|---|
| 10 Years: | 7% |
| 5 Years: | -5% |
| 3 Years: | -14% |
| Last Year: | -22% |
Balance Sheet
Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS
| Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Sep 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share Capital + | 635 | 635 | 638 | 644 | 644 | 679 | 679 | 679 | 679 | 720 | 766 | 766 | 766 |
| Reserves | 18,537 | 32,064 | 36,999 | 64,960 | 55,618 | 78,273 | 57,383 | 94,749 | 59,500 | 61,491 | 54,481 | 43,795 | 25,409 |
| Borrowings + | 32,811 | 47,149 | 53,716 | 60,642 | 73,610 | 69,360 | 78,604 | 88,950 | 106,175 | 124,788 | 142,131 | 146,449 | 144,354 |
| Other Liabilities + | 48,400 | 62,919 | 76,977 | 92,180 | 107,442 | 114,872 | 135,914 | 142,813 | 139,349 | 133,181 | 144,193 | 138,051 | 145,111 |
| Total Liabilities | 100,382 | 142,766 | 168,330 | 218,426 | 237,315 | 263,184 | 272,580 | 327,192 | 305,703 | 320,179 | 341,570 | 329,061 | 315,640 |
| Fixed Assets + | 35,349 | 44,360 | 55,512 | 69,092 | 88,479 | 107,232 | 95,944 | 121,414 | 111,234 | 127,107 | 138,708 | 138,855 | 133,965 |
| CWIP | 11,457 | 15,946 | 18,454 | 33,263 | 28,640 | 25,919 | 33,699 | 40,034 | 31,884 | 35,622 | 20,964 | 10,251 | 1,797 |
| Investments | 2,544 | 8,918 | 8,765 | 10,687 | 15,337 | 23,767 | 20,338 | 20,813 | 15,771 | 16,308 | 24,620 | 29,380 | 22,126 |
| Other Assets + | 51,032 | 73,542 | 85,600 | 105,385 | 104,858 | 106,266 | 122,600 | 144,932 | 146,814 | 141,141 | 157,278 | 150,575 | 157,752 |
| Total Assets | 100,382 | 142,766 | 168,330 | 218,426 | 237,315 | 263,184 | 272,580 | 327,192 | 305,703 | 320,179 | 341,570 | 329,061 | 315,640 |