Tata Motors Limited (TATAMOTORS) AI Stock Analysis

• Market Cap: ₹1.29T
• Dividend Yield: 1%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 1.4
• Beta (1Y): 1.26
• Revenue Growth: -6.87%
• EPS Growth: 193.82%
• Country: IN
• Employees: 91,496
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -17.50
• Shares Outstanding: 3,682,331,300
• 10 Day Avg. Volume: 1,553,168
• 30 Day Avg. Volume: 1,162,158
• PEG Ratio: -2.31
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 9.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹379.00 ▲(10.11% Upside)

Tata Motors' overall stock score is driven by its strong financial performance, despite challenges in operational efficiency and debt management. The technical analysis indicates bearish momentum, which negatively impacts the score. The low P/E ratio suggests potential undervaluation, but the modest dividend yield may not appeal to all investors.

Positive Factors

Improving Profitability

The company's improving profitability and cash flow metrics indicate a strong ability to generate earnings, enhancing long-term financial health.

Debt Management

An improving debt-to-equity ratio suggests better leverage management, which can lead to increased financial stability and lower risk.

Cash Flow Generation

Strong operating and free cash flow growth indicates efficient cash generation, supporting reinvestment and debt servicing capabilities.

Negative Factors

Operational Efficiency Challenges

Inconsistent operational efficiency can lead to volatility in earnings, affecting the company's ability to sustain long-term profitability.

High Total Debt Level

High debt levels can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns.

EBIT and EBITDA Margin Volatility

Volatile EBIT and EBITDA margins suggest potential instability in cost management, impacting consistent profit growth.

Tata Motors Limited Business Overview & Revenue Model

Company Description

Tata Motors Limited designs, develops, manufactures, and sells various automotive vehicles. The company offers passenger cars; sports utility vehicles; intermediate and light commercial vehicles; small, medium, and heavy commercial vehicles; defense vehicles; pickups, wingers, buses, and trucks; and electric vehicles, as well as related spare parts and accessories. It also manufactures engines for industrial and marine applications; aggregates comprising axles and transmissions for commercial vehicles; and factory automation equipment, as well as provides information technology and vehicle financing services. The company offers its products under the Tata, Daewoo, Harrier, Safari, Fiat, Nexon, Altroz, Punch, Tiago, Tigor, Jaguar, and Land Rover brands. It operates in India, China, the United States, the United Kingdom, rest of Europe, and internationally. The company was formerly known as Tata Engineering and Locomotive Company Limited and changed its name to Tata Motors Limited in July 2003. Tata Motors Limited was incorporated in 1945 and is headquartered in Mumbai, India.

How the Company Makes Money

Tata Motors generates revenue through multiple streams, primarily from the sale of vehicles, including passenger cars, commercial vehicles, and electric vehicles. The company earns money by manufacturing and selling its own branded vehicles, as well as through ancillary services such as financing, insurance, and after-sales services. Additionally, Tata Motors benefits from partnerships and collaborations with technology firms for electric vehicle development and connected car solutions. The company's revenue is also supported by exports to international markets, leveraging its global manufacturing footprint. Its ability to innovate and adapt to changing market trends, including the shift towards electric mobility, positions Tata Motors for sustained profitability.

Tata Motors Limited Financial Statement Overview

Summary

Tata Motors Limited is on a positive growth trajectory with improving profitability and cash flow metrics. The company has made strides in reducing leverage and enhancing shareholder returns. However, challenges remain with maintaining consistent operational efficiency and managing debt levels.

Income Statement

Tata Motors Limited shows a strong gross profit margin and consistent revenue growth over the years, with a notable improvement in net profit margin in the latest fiscal year. However, the company has experienced fluctuating EBIT and EBITDA margins, indicating potential volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an improving debt-to-equity ratio over recent years. However, the company has a relatively high total debt level, which poses a leverage risk. Return on equity is strong due to recent net income improvements, enhancing shareholder value.

Cash Flow

Tata Motors demonstrates robust operating cash flow, and its free cash flow has shown positive growth, particularly in the latest year. The free cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. Despite this, past years showed variability, highlighting some cash flow management challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.39T	4.40T	4.34T	3.46T	2.78T	2.50T
Gross Profit	1.97T	1.99T	1.88T	1.38T	1.13T	1.04T
EBITDA	536.46B	466.39B	468.25B	217.59B	132.67B	198.76B
Net Income	211.88B	278.30B	313.99B	24.14B	-114.41B	-134.51B
Balance Sheet
Total Assets	0.00	3.79T	3.71T	3.36T	3.31T	3.34T
Cash, Cash Equivalents and Short-Term Investments	674.28B	615.48B	599.29B	513.76B	634.45B	650.97B
Total Debt	0.00	715.40B	1.10T	1.37T	1.48T	1.46T
Total Liabilities	-1.25T	2.56T	2.78T	2.83T	2.82T	2.82T
Stockholders Equity	1.25T	1.16T	849.18B	453.22B	445.61B	503.30B
Cash Flow
Free Cash Flow	0.00	250.60B	365.02B	172.92B	-8.86B	87.95B
Operating Cash Flow	0.00	631.02B	679.15B	353.88B	142.83B	290.01B
Investing Cash Flow	0.00	-475.94B	-228.28B	-168.04B	-47.75B	-261.26B
Financing Cash Flow	0.00	-187.86B	-370.06B	-262.43B	-33.80B	99.04B

Tata Motors Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 344.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAMOTORS, the sentiment is Neutral. The current price of 344.2 is below the 20-day moving average (MA) of 350.67, below the 50-day MA of 353.71, and below the 200-day MA of 396.90, indicating a bearish trend. The MACD of -3.83 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TATAMOTORS.

Tata Motors Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARUTI	76 Outperform	₹4.59T	30.53	―	0.81%	10.62%	4.43%
EICHERMOT	76 Outperform	₹1.95T	37.87	―	0.96%	25.37%	19.52%
M&M	68 Neutral	₹4.27T	26.55	―	3.05%	20.60%	19.80%
HYUNDAI	65 Neutral	₹1.79T	30.56	―	0.91%	-0.35%	-4.21%
BAJAJ.AUTO	64 Neutral	₹2.68T	29.89	―	2.31%	11.83%	13.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TATAMOTORS	60 Neutral	₹1.29T	1.38	―	1.00%	-6.87%	193.82%

Tata Motors Limited Corporate Events

Tata Motors Rebrands as Tata Motors Passenger Vehicles Limited

Tata Motors Limited has announced a change in its company name and scrip code, now operating under the name Tata Motors Passenger Vehicles Limited. This change follows a Composite Scheme of Arrangement sanctioned by the National Company Law Tribunal, involving Tata Motors Limited, TML Commercial Vehicles Limited, and Tata Motors Passenger Vehicles Limited. The name change reflects a strategic realignment and could impact the company’s market positioning and stakeholder perceptions.

Tata Motors Announces Major Equity Share Allotment as Part of Corporate Restructuring

Tata Motors Limited has announced the allotment of over 368 crore equity shares to its shareholders as part of a Composite Scheme of Arrangement involving its subsidiaries, TML Commercial Vehicles Limited and Tata Motors Passenger Vehicles Limited. This move results in TMLCV no longer being a wholly owned subsidiary of Tata Motors, and the company plans to list these shares on major stock exchanges, potentially impacting its market positioning and shareholder value.

Tata Motors Rebrands to Focus on Passenger Vehicles

Tata Motors Limited has officially changed its name to Tata Motors Passenger Vehicles Limited following a Composite Scheme of Arrangement sanctioned by the National Company Law Tribunal. This change reflects the company’s strategic focus on its passenger vehicles segment, and it involves amendments to the company’s Memorandum and Articles of Association. The company is in the process of updating its name across stock exchanges and other official records, while TML Commercial Vehicles Limited will adopt the name Tata Motors Limited in due course. This rebranding is part of a broader corporate restructuring aimed at enhancing operational efficiency and market positioning.