Tata Motors Share Fundamental Analysis | Is Tata Motors a good buy for long term

Tata Motors Share Fundamental Analysis– Friends, the way the entire auto sector has seen good growth for some time, due to which its good effect has also been seen in the business of Tata Motors. The company’s business has started seeing many such opportunities for the future, due to which long-term investors are showing a lot of hope on the company’s stock.

Today we will do a complete fundamental analysis of Tata Motors Share, a company showing rapid growth of the auto sector, so that you will know whether it is right to invest in this stock in the long run or not. Let us analyze in detail the share of Tata Motors-

Tata Motors Share Fundamental Analysis

Before knowing the complete Fundamental Analysis of Tata Motors stock in detail, it is very important to know its business very well. Tata Motors is India’s one of the largest automobiles manufacturer currently working from last 77 Years. Company involved in the manufacturing of Cars, Trucks, buses and Utility Vehicles which worked as a helping tool for your workers in Manufacturing Industry. Company provides their services all over the Globe through their network of subsidiaries present around the World.

Tata Motor’s are renowned as of the oldest Indian Company which engages in the manufacturing of automobiles.  Tata Motors headquartered in Mumbai. The Founder of Tata Motors is J.R.D. Tata who established Tata Motors in the year 1945. The present Subsidiaries includes company likes Jaguar Cars, Jaguar Land Rover. Tata Motors is of the one of Companies in the Tata Group of Organization.

Tata Motors Financial Analysis

In this section of article, we try to analyze financial aspect of Tata Motors through the data which is available at the official site of Tata Motors.  The market Cap of Tata motors as of now is around Rs.165000.95cr. at the end of month December in financial year 2021-22. The promoters of the Company have around only 46.41% of the total shares present in the market. The Sales growth of Tata Motors stands at around 7.06%.

Tata Motors Profit Growth is about 67.14% as of now which is one of the good sign for any of the manufacturing Company at this Pandemic time where Automobiles Industry face their worst time in the history. If we compare financial status of Tata Motors with their peers Competitors Tata Motors outcast their competitors in this field too. The net sales in last one financial year were increased in every quarter due to which Tata Motors able to decrease their loss in that pandemic time of Corona.

Tata Motors Future Prospectus

Tata Motors in future try to invest their high amount of assets in the manufacturing of electric Vehicles which help Tata Motors to increase their customer based. Tata Motors not only try to invest in electric cars they also try to produce electrical trucks, Tractors and other Commercial vehicles which help their Commercial customers to help to manage their expenses in Fuels.

Tata Motors also try to invest in manufacturing lithium ions cells which help them to build zero emission vehicles in Upcoming years. Tata Motors also try to increase their network of services through investing in the other automobiles Manufacturing Company. Tata Motors will try to make new innovative technologies for which Tata Motors invest their most of the funds in research field to make best and innovative vehicles in the market.


Risk of Tata Motors Share

  • Tata Motors  has a poor revenue growth of -6.69% for last 3 years which is one of the worrying factor for the investor and promoters of the Company because if Company cannot able to make revenue in as much which is needed to run a company smoothly then it will be one of the worrying factor the Company.
  • Tata Motors has a ROE% which is stands at -13.11%. The ROE is a one of the important factor to check the present condition of the Company in the Market because Tata Motors works in automobile sector where Companies need to invest their high equity and also they need to take huge debt to their manufacturing and research works. The debt to equity ratio of Tata Motors is also low which about 1.14.
  • The promoters of this Company have around 46.41% of the total shares of Tata Motors present in the Market which is very low due to which Promoters have to ask their investors to whether to take the risk and any debt from market to improve their position in the market. If promoters of Tata Motors have high percent of shares in their hand it will be a good sign for the Company futures.
  • The PE which is parameter which analyze that what the market is willing to pay for a Company. The Current PE of Tata Motors is around -189.52 which around 5.85 in the year 2019.

Is Tata Motors a good buy for long term

Expert view after analyzing every possible aspect which can perform important role in the uptrend and downtrend of the share price of Tata Motors we can say it’s a good time to buy this share of Tata Motors when it will move in a downtrend for a while in upcoming days.

I will suggest you to buy this Company share for a long term because Company have a huge scope of growth in Upcoming years but Next One year will be of the testing time for this Company that’s why I suggest you to buy this share of Tata Motors for a long term to earn profit of around 10% in next 5 to 10 Years.

My Opinion:-

Undoubtedly, Tata Motors is an emerging strong company in the auto sector and the management is also taking its business forward keeping the future in mind. If you are a long-term investor, then you should definitely keep an eye on a company like Tata Motors working with future in mind.

Also read:- Trident is good share for buying Trident share fundamental analysis

Tata Motors Share Fundamental Analysis (FAQ)

– Is it a good idea to stay invested in Tata Motors Share for long term?

The way Tata Motors seems to be working fast in its EV segment, it can be expected that Tata Motors has full potential to become a great company in the long run.

– Is Tata Motors a debt free company?

No, if you look at the company, you can see a large amount of debt burden, but the good thing is that the management is trying its best to reduce the debt on the company as soon as possible.

– Who is the CEO of Tata Motors Company?

Marc Llistosella is the CEO of tata motors.

I hope that after reading the Tata Motors Share Fundamental Analysis post, you must have understood the complete details of the company’s business as well as what would be right for long-term investors to do in this company. If you still have any question related to this post in your mind, then do not forget to ask in the comment. You can also read our other posts for such important information related to the stock market.

5/5 - (2 votes)

Leave a Comment

5 जून से भारतीय शेयर बाज़ार कैसा रुख दिखाएगा, जानिए एक्सपर्ट की राय ब्रोकरेज ने रखी इन 3 शेयरों में बड़ी टारगेट, जानिए बिस्तार से कब तक निफ्टी 21000 के ऊपर जाएगा, जानिए एक्सपर्ट की राय एक्सपर्ट ने दी इन तीन शेयरों पर बड़ी टारगेट, जानिए पूरी डिटेल्स इन 5 शेयरों में कम समय में हो सकती है बड़ी कमाई, जानिए स्टॉक का नाम