Tata Motors Limited (TATAMOTORS) AI Stock Analysis

• Market Cap: ₹2.33T
• Dividend Yield: 0.95%
• Average Volume (3M): 897.45K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.30
• Revenue Growth: 1.06%
• EPS Growth: -24.66%
• Country: IN
• Employees: 91,496
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): 10.65
• Shares Outstanding: 3,681,710,400
• 10 Day Avg. Volume: 1,307,061
• 30 Day Avg. Volume: 897,450
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹744.75
• Price Target Upside: 17.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: ₹730.00 ▲(15.27% Upside)

Tata Motors' strong financial performance, particularly in revenue and cash flow growth, is offset by technical indicators signaling possible weakness. While the stock appears undervalued, high leverage and fluctuating operational efficiency necessitate caution.

Tata Motors Limited Business Overview & Revenue Model

Company Description

Tata Motors Limited (TATAMOTORS) is a leading global automobile manufacturer headquartered in Mumbai, India. The company operates in several sectors, including the automotive and engineering industries, and is primarily engaged in the design, development, manufacture, and sale of a wide range of vehicles. Tata Motors produces passenger cars, trucks, buses, and defense vehicles, and it also offers automotive solutions through its subsidiaries and joint ventures. The company is known for its innovative and sustainable mobility solutions and has a strong presence in both domestic and international markets.

How the Company Makes Money

Tata Motors Limited primarily generates revenue through the sale of its diverse range of vehicles, including passenger cars, commercial vehicles, and special-purpose vehicles. The company's revenue streams are bolstered by its wide product portfolio that caters to various market segments and its extensive distribution network across multiple geographies. Additionally, Tata Motors benefits from strategic partnerships and collaborations, such as those with Jaguar Land Rover, which allow it to access advanced technologies and expand its market reach. The company also earns through the provision of automotive services, including maintenance and spare parts. Furthermore, Tata Motors invests in research and development to enhance its product offerings and maintain competitiveness in the global automotive industry.

Tata Motors Limited Financial Statement Overview

Summary

Tata Motors Limited shows strong revenue growth and profitability improvements. The company is reducing leverage and enhancing shareholder returns. However, fluctuating EBIT, EBITDA margins, and high debt levels pose operational and financial risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.46T	4.35T	3.43T	2.75T	2.48T
Gross Profit	1.77T	1.49T	1.05T	1.13T	817.57B
EBITDA	621.19B	645.11B	381.42B	262.46B	193.75B
Net Income	281.49B	313.99B	24.14B	-114.41B	-142.70B
Balance Sheet
Total Assets	3.79T	3.71T	3.36T	3.31T	3.34T
Cash, Cash Equivalents and Short-Term Investments	615.48B	592.17B	513.76B	630.25B	650.97B
Total Debt	715.40B	1.10T	1.37T	1.48T	1.46T
Total Liabilities	2.56T	2.78T	2.83T	2.82T	2.82T
Stockholders Equity	1.16T	849.18B	453.22B	445.61B	503.30B
Cash Flow
Free Cash Flow	250.60B	365.02B	172.92B	-8.86B	87.95B
Operating Cash Flow	631.02B	679.15B	353.88B	142.83B	290.01B
Investing Cash Flow	-475.94B	-228.28B	-168.04B	-47.75B	-261.26B
Financing Cash Flow	-187.86B	-370.06B	-262.43B	-33.80B	99.04B

Tata Motors Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 633.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAMOTORS, the sentiment is Negative. The current price of 633.3 is below the 20-day moving average (MA) of 671.95, below the 50-day MA of 684.95, and below the 200-day MA of 712.40, indicating a bearish trend. The MACD of -11.34 indicates Positive momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 12.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹3.95T	27.21		1.07%	7.53%	-2.90%
HYUNDAI	70 Outperform	₹1.72T	31.20		0.99%	-2.62%	-11.26%
EICHERMOT	69 Neutral	₹1.55T	32.07		1.24%	15.21%	15.48%
TATAMOTORS	69 Neutral	₹2.33T	11.00		0.95%	1.06%	-24.66%
BAJAJ.AUTO	67 Neutral	₹2.30T	30.23		2.55%	13.65%	-3.76%
Sector *	63 Neutral	€17.75B	13.26	7.79%	3.57%	-0.28%	-98.18%
M&M	―	₹3.86T	29.17		0.68%	―	―

Tata Motors Limited Corporate Events

Tata Motors Announces Conference Call on Iveco Group Acquisition

Tata Motors Limited has announced a conference call scheduled for July 31, 2025, to discuss its recent acquisition of the Iveco Group NV, excluding its defense business. This strategic move is expected to enhance Tata Motors’ market position by expanding its portfolio and capabilities in the automotive sector, potentially impacting stakeholders positively by broadening its global reach and operational capabilities.

Tata Motors Clarifies Speculation and Confirms Iveco Acquisition

Tata Motors Limited has clarified that recent news about a potential $4.5 billion deal with Iveco was speculative and not based on any official information from the company. However, the company’s board has approved the acquisition of 100% common shares of Iveco Group N.V., and all necessary disclosures have been made to the stock exchanges, indicating a strategic move that could impact its market positioning and stakeholder interests.

Tata Motors Launches Tender Offer for Iveco Group Shares

Tata Motors Limited, through its subsidiary TML CV Holdings Pte. Ltd., has launched an all-cash voluntary full tender offer for all common shares of Iveco Group N.V., a company listed on Euronext Milan. This strategic move aims to acquire all issued common shares of Iveco, excluding its defense business, which is set to be spun off or sold. The offer is priced at Euro 14.10 per share and includes plans to delist Iveco from Euronext Milan, potentially impacting stakeholders by reshaping the company’s market positioning and operations.