In this post we will analyze all about Tata Motors, their fundamentals, future view, company’s outlook, their financials, shareholding patterns etc , Based on company’s fundamentals and technical analysis, we will try to predict Tata Motors share price target 2023,2024,2025 and 2030.
About Tata Motors
Tata Motors is an Indian multinational automotive manufacturing company headquartered in Mumbai, India. It is a part of the Tata Group, one of India’s largest conglomerates. The company was founded in 1945 and has since grown to become a leading manufacturer of vehicles in India and a major player in the global automotive industry.
Tata Motors is known for a wide range of vehicles, including passenger cars, buses, trucks, and defense vehicles. The company also manufactures a range of industrial and construction equipment. From recent years, Tata Motors has made a push into electric vehicles, with a focus on developing electric passenger cars and commercial vehicles.
Tata Motors has operations in over 150 countries and sells its vehicles under a variety of brand names, including Tata, Jaguar, Land Rover, and others. The company has partnerships with several major automakers, including Volkswagen and Mercedes-Benz.
History of Tata Motors
Tata Motors was founded in 1945 as a manufacturer of locomotives and other engineering products. The company was initially known as Tata Engineering and Locomotive Company (TELCO), and it was based in Mumbai, India. In the 1950s, TELCO began to diversify its business and entered the automotive market, beginning with the production of commercial vehicles.
In the 1960s, TELCO introduced its first passenger car, the Tata Sierra, and began exporting vehicles to other countries in the region. In the following decades, the company continued to expand their operations and introduced a number of new vehicles.
In the 1990s, Tata Motors entered the global market, establishing partnerships with major automakers such as Daimler AG and Volkswagen. In 2008, the company acquired the luxury car brands Jaguar and Land Rover from Ford, further expanding its presence in the global automotive market.
Today, Tata Motors is one of the largest and most respected automotive manufacturers in India and a major player in the global industry. The company continues to innovate and expand its product line, with a focus on sustainability and the development of electric vehicles.
Tata Motors Latest News:
Tata Motors Q3 Results:
- Leading automaker swings back to profit after 7 quarters, revenue jumps 22% YoY
- Posted a consolidated net profit of Rs 2,958 crore for the quarter ended December, against a loss of Rs 1,516 crore a year ago.
- Consolidated revenue from operations rose 22.5% YoY to Rs 88,489 crore.
EBITDA rose 11% on year to Rs 9,900 crore and the margin improved 90 basis points to 11.1%. - Jaguar Land Rover Automotive Plc (JLR) reported a strong 28% growth in revenue to 6.04 billion pound sterling.
- JLR earnings before interest and tax (EBIT) margin expanded a sharp 230 basis points YoY to 3.7%.
- JLR EBITDA margin, however, dipped 10 bps to 11.9%.
- Tata Motors’ standalone net profit for the third quarter jumped nearly 3-fold to Rs 506.19 crore, and revenue increased 28% YoY to Rs 15,794 crore.
- Free cash flow for the quarter was 490 million sterling.
TATA MOTORS Share Price Target 2023: Technical Analysis
Tata Motors Share Analysis:
Tata motors share is trading near its 200 Dema.
Above 420 level we could see a further rally in Tata Motors share price.
Upcoming targets for Tata Motors share for year 2023 would be ₹435 and ₹480.
TATA MOTORS Share Price Target 2023
| Year | TATA MOTORS Share Price in 2023 |
| 2023 | ₹435 to ₹480 |
Company Overview:
| Parent Company | Tata Group |
| Company Website: | tatamotors.com |
| Market Cap (Cr.) | ₹ 1,28,168.59 |
| 52 W High / Low | ₹ 528.35/366.05 |
| Stock P/E | 1108.88 |
| Book Value | ₹ 78.8 |
| Face Value | ₹ 2.00 |
| ROCE | 1.40 % |
| ROE | 0.60% |
| Dividend Yield | 0.00 |
Tata Motors Business Overview:
Tata Motors has a wide range of operations in the automotive and related industries. The company’s main business is the design, development, and manufacture of a wide range of vehicles, including passenger cars, buses, trucks, and defense vehicles. In addition to its core automotive business, Tata Motors also manufactures a range of industrial and construction equipment.
Tata Motors has a global presence, with operations in over 150 countries. The company has a number of manufacturing facilities around the world, including in India, South Africa, Thailand, and the United Kingdom. Tata Motors also has a network of dealerships and service centers in many countries, providing sales, service, and support to customers.
In recent years, Tata Motors has made a push into the electric vehicle market, with a focus on developing electric passenger cars and commercial vehicles. The company has also invested in developing new technologies and innovative solutions for the automotive industry, such as connected and autonomous vehicles.
Key Highlights:
Presence: Tata Motors Group is present in over 125 countries, with a worldwide network comprising over 9,000 touch points.
Manufacturing Facilities:
- India : 10 Manufacturing faciliaties and 2 R&D/engineering and design centres
- Europe: 2 Manufacturing facilities and 1 R&D/engineering and design centre
- UK: 5 Manufacturing facilities and 3 R&D/engineering and design centre
- North America: 1 R&D/engineering and design centre
- China: 1 Joint manufacturing facility
Product Portfolio:
Tata Motors CV product range:
- M&HCV: Signa, Prima
- ILCV:Ultra, Tata 407
- SCV & PICKUP: Intra, Ace, Yodha
- BUSES AND VANS:Magic Ambulance, winger, Star Bus, Ultra EV
Tata Motors PV product range:
- Tiago, Tigor, Altroz, Punch, Nexon, Harrier, Safari
- EV product range: Tigor EV, Xpres-T EV, Nexon EV, Nexon EV Max
Jaguar Land Rover:
- Jaguar: Jaguar F-PACE, Jaguar E-PACE, Jaguar I-PACE, Jaguar F-TYPE, Jaguar XE, Jaguar XF
- Land Rover: The New Range Rover, The New Range Rover Sport, Range Rover Velar, Range Rover Evoque, New Discovery, Discovery Sport, Defender
Tata Motors automotive operation segments:
- Commercial vehicles
- Passenger vehicles
- Jaguar Land Rover
Commercial and Passenger Vehicles:
- Tata Motors sold 7,39,722 units of Tata Commercial Vehicles and Tata Passenger Vehicles and 2,94,182 units (excluding wholesales from the China Joint Venture) of Jaguar Land Rover vehicles in FY 2021-22.
- In India, Tata Motors sold 6,93,036 and 4,63,736 units during FY 2021-22 and FY 2020-21, respectively (constituting 67.0% and 55.4% of total sales in FY 2021-22 and FY 2020-21, respectively).
- Tata Motors continued to remain market leader in electric vehicles in India in FY 2021-22 with an 87% share due to a strong response for Nexon EV.
- Significant increase of 50.5% in the sale of medium and heavy commercial vehicles in FY 2021-22 compared to FY 2020-21.
- Tata Motors overall Commercial Vehicle sales in international markets increased by 71.53% to 34,791 units in FY 2021-22, compared to the 20,283 units sold in FY 2020-21.
- Sales in CV Passenger Vehicles segment in India increased by 74.8% in FY 2021-22 compared to FY 2020-21
- At March 2022, Tata motors sales and distribution network in India comprised approximately over 6,300 touch points for sales and service for Passenger Vehicles and Commercial Vehicles businesses.
JAGUAR LAND ROVER Segment
- For the FY 2021- 22 Jaguar Land Rover’s performance on a wholesale basis was down by 15.4% and Retail sales was down by 14.4% compared to FY 2020-21.
- Whereas Demand remains strong with the order bank growing to a new record 168,471 units at March 31, 2022. Orders for the New Range Rover have grown to 45,584, while demand for the Defender remains strong with 40,618 orders.
- Jaguar Land Rover continued to roll out electrification technology across its model range in FY 2021-22. The electrified mix, which includes mild hybrid, plug-in hybrid and battery electric vehicles (“BEV”), rose from 51% in FY 2020-21 to 66% in FY 2021-22.
- Jaguar Land Rover’s Sales & Distribution: As at March 31, 2022, Jaguar Land Rover distributed its vehicles in 119 markets for Jaguar and 123 markets for Land Rover globally.
- The Jaguar brand will become fully electric by 2025 and Land Rover shall have 6 BEVs by 2026. 60% of Jaguar Land Rover’s volumes will be pure BEV vehicles by 2030.
OPERATING RESULTS
- In FY 2021-22 income from operations (including vehicle finance revenues) increased by 11.3% to INR 278,454 crores from INR 249,795 crores in FY 2020-21.
- This increase was mainly attributable to increased vehicle volumes, mainly for Tata Commercial Vehicles and Passenger Vehicles and favorable currency translation from GBP to INR which was offset by lower sales volumes at Jaguar Land Rover.
- Excluding the exceptional items, loss before tax was INR 6,448 crores in FY 2021-22, as compared to profit before tax of INR 2,908 crores in FY 2020-21. This loss was due to lower sales at Jaguar land Rover due to semi-conductor chip shortages and commodity price increase across all segments.
Tata Motors Revenue and Earnings (EBIT) performance in FY22
In FY 2021-22, Jaguar Land Rover contributed 68% of our total automotive revenue compared to 78% in FY 2020-21 (before intra segment elimination) and the remaining 32% was contributed by Tata and other brand vehicles and Vehicle Financing in FY 2021- 22, compared to 22% in FY 2020-21.
However, revenue from Electric vehicle increased to INR 1,349 crores in FY2021-22 from INR 571 crores in FY 2020-21 and Utility Vehicles increased by 37.7% to INR 8,988 crores in FY2021-22 from INR 6,534 crores in FY 2020-21.
Tata Motors Revenue comparison for FY22 and FY21
Pros:
- Strong Parents based Company
- Future outlook is good, even management said, Each of our businesses are self-sustaining which gives me the confidence that we will get to near zero net automotive debt by FY24.
- Electric Vehicle segment could be a major turnaround in future.
Cons:
- Stock is trading at 5.22 times its book value
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 0.64% over past five years.
- Company has a low return on equity of -13.7% over last 3 years.
- Company have a high debt, debt-to-equity-ratio is 5.52
Tata Motors Share Analysis Video:
Tata Motors Market Shares in various categories in the Indian market based on wholesale volumes:
| Category | FY-21-22 (%) | FY20-21(%) |
| Passenger Cars | 9.8 | 8.8 |
| Utility Vehicles | 15.1 | 7.4 |
| Total PV(Passenger Vehicle) | 12.5% | 8.2% |
| Medium and Heavy Commercial Vehicles | 58.2 | 58.1 |
| Intermediate and Light Commercial Vehicles | 49 | 45.9 |
| SCVs and Pickups | 39.1 | 37.5 |
| CV Passenger Vehicles | 44.8 | 40.6 |
| Total CV (Commercial Vehicle) | 44.9 | 42.4 |
| Total Four-Wheel Vehicles | 18.8 | 14.1 |
Source: Society of Indian Automobile Manufacturers Report and our internal analysis.
TATA MOTORS Share Price Target 2024-2025
Financial year 2022-23 result announcement will show the clear picture for upcoming years target, last year tata motors has performed well on domestic figure but their Jaguar and Land Rover segment didn’t performed well, however the demand was very high, but due to the shortage of semiconductor ship, they could not full fill the demand. Here is the expected target for the year 2024 and 2025.
TATA MOTORS Share Price Target 2024
| Year | TATA MOTORS Share Price in 2024 |
| 2024 | ₹510 to ₹560 |
Credit Rating
As at March 31, 2022, JLR’s rating was “B1”/ Stable by Moody’s, “B+”/Stable by Standard & Poor’s As at March 31, 2022, for TMFHL and its subsidiaries, CRISIL, ICRA and CARE rating on long- term debt instruments and long-term bank facilities stood at “AA -/ Stable”,
The credit rating for Tata Motors as was as follows.
| Rating agency | Long-term borrowings | Short-term borrowings |
| CARE | AA- / Stable | A1+ |
| ICRA | AA- / Stable | A1+ |
| CRISIL | AA- /Stable | A1+ |
| S&P | BB- / Stable | – |
| Moody’s | B1 / Stable | – |
TATA MOTORS Share Price Target 2025
| Year | TATA MOTORS Share Price in 2025 |
| 2025 | ₹750 to ₹860 |
OUTLOOK:
- A report by India Energy Storage Alliance estimated the EV market to increase at a CAGR of 36% until 2026.
- The EV battery market is also expected to expand at a CAGR of 30% during the same period.
- Cumulative investment of INR 12.5 trillion (US$ 180 billion) in vehicle production and charging infrastructure would be required until 2030 to meet India’s EV ambitions.
- With the government’s aim to move towards a completely Aatmanirbhar Bharat, the Ministry of Heavy Industries has sanctioned 2877 public EV charging stations in 68 cities all over India, under the Scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase-II (FAME India Phase II).
- The government also announced 178 Management Discussion and Analysis a battery-swapping policy in the Union Budget 2022-23, which will allow drained batteries to be swapped with charged ones at designated charging stations, thus making EV’s more viable for potential customers.
- To help the automotive industry overcome the cost disabilities, economies of scale, and facilitate growth of the industry by building a robust supply chain, in areas of Advanced Automotive Technologies [AAT], government has launched the PLI scheme for automobile and the auto component industry, for the next 5 years-starting FY 2022-23 with an outlay of 26,000 crores.
- An estimated 60 percent of the Auto component manufacturers are equipped to be part of the EV supply chain, while the rest would be ready in the next two odd years.
- According to NITI Aayog and Rocky Mountain Institute (RMI), India’s EV finance industry is likely to reach ` 3.7 lakh crore (US$ 50 billion) by 2030.
- IBEF has also predicted that the Indian auto industry is expected to record strong growth in 2022-23.
Company Vision:
- Continued investment, by Jaguar Land Rover, in new products, services, technologies and manufacturing capabilities is key for the long term success of the Company.
- With an aim to redefine modern luxury, and the growing worldwide customer appetite for electric vehicles, JLR is accelerating the Reimaging strategy’s transformation into a business that will deliver double-digit EBIT margins within five years and achieve net zero carbon through the company’s entire value chain, including its products, supply chain and operations, by 2039.
- The New Range Rover introduces plug-in hybrid electric propulsion with a segment-leading official electric-only range of over 100km. From 2024, a pure-electric New Range Rover will join the family.
- Over the next four years, Land Rover aspires to welcome six, all electric variants across two architectures – the flexible Modular Longitudinal Architecture (MLA) and the Electric Modular Architecture (EMA). We expect 60% of the global Land Rover sales to be purely-electric by 2030.
- From 2025, new Jaguar and Land Rover vehicles will be built on the NVIDIA DRIVE™ software-defined platform – delivering a wide spectrum of active safety, automated driving and parking systems, as well as AI features inside the vehicle.
- The shortage of semiconductors is likely to continue in the coming year with gradual improvement throughout FY 2022-23. In response to these challenges, JLR is focusing on the production of higher margin products and closely monitoring the supply chain.
SUBSIDIARY, JOINT ARRANGEMENTS AND ASSOCIATE COMPANIES
The Company has 86 subsidiaries (14 direct and 72 indirect), 10 associate companies, 4 joint ventures and 2 joint operations as at March 31, 2022.
Tata Motors Shareholding Patterns:
| Shareholding | Sep 2022 |
| Promoter | 46.40 |
| FIIS | 14.13 |
| DIIS | 14.75 |
| Public | 24.58 |
TATA MOTORS Share Price Target 2030:
Electric Vehicle segment could be a major turning point for Tata motors, Till 2030 we could expect a phenomenal growth in EV segment market, therefore here is a conservative target for the year 2030.
| Year | TATA MOTORS Share Price in 2030 |
| 2030 | ₹2600 to ₹3000 |
Conclusion:
Overall Tata Motors is a very good company, however the company didn’t given a value to their investor as expected, also company have a heavy debt, and there maximum profit is used to pay the interest. The shortage of semi conductor have impacted the Jaguar Land Rover segment, in future their EV segment could be a major turnaround for the company. In coming year we can expect a good growth in all segments for the company.
That’s the end of the post “Tata Motors Share Price Target 2023, 2024, 2025-2030”, write your views below in comment section.
Source: Tata Motors Annual Reports
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
