Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1656.5 billion (USD 29 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, mid-size car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. Jaguar Land Rover, acquired in 2008, represents 65% of its revenues and the rest comes from Tata vehicles. The breakdown of revenues by geographical market in 2011 is as follows : 37.4% in India, 12% in the US, 11.25% in the UK, 12.2% in the rest of Europe and 27.2% in the rest of the world.
From a fundamental viewpoint, Tata Motors has a low valuation : for 2013, PER is estimated at 6.1x and EV/EBITDA at 3.8x. The company has a strong organic growth. Analysts increased continually their EPS and revenues estimates. The Indian firm has the best Surperformance rating with five stars.
From a technical viewpoint, the security fell in the end of May despite strong results with high rate of surprise (95% for the EPS). The stock rebounded on its INR 221.7 support. Today, Tata Motors is in a consolidation phase and price is stopped by the INR 248.4 resistance. Crossing it in the closing price would be a bullish signal and the stock will soar to its INR 319.2 resistance.
Therefore, investors can buy the stock on a crossing of the resistance. The target price will be INR 320. To avoid important losses, a stop-loss order will be fixed in the INR 220 area.
Tata Motors Limited is the Indian leader in automotive construction. Net sales break down by activity as follows:
- sale of vehicles (83.6%): utility vehicles (366,909 units sold in 2020/21), commercial vehicles (257,136 sold) and passenger vehicles (213,738 units sold) marketed under the Tata, Fiat, Jaguar and Land Rover brands;
- sale of spare parts (9.9%);
- sales financing services (1.6%);
- other (4.9%): manufacturing of construction equipment, electronic and plastic components, etc.
Net sales are distributed geographically as follows: India (20.2%), the United Kingdom (14.9%), Europe (13.6%), the United States (18.8%), China (17.9%) and other (14.6%).