MOTORS

MADE BY:- DIVISHA JHA MEGHA GOEL

INDEX
‡ Economy and industry analysis ‡ Company analysis
‡ ‡ ‡ ‡ Introduction Acquisition Rise of Tata motors Financial analysis
± ± ± ± ± ± Operating profit & net profit Financial results Appropriation of profits Fixed asset, investments and current assets Ratio analysis Competitors annalysis

‡ 3. Stock analysis ‡ 4. SWOT Analysis ‡ 5. Recommendation

4% in 2009-2010 ‡ Automotive industry in India one of the largest & fastest growing globally ‡ Manufactures over 11 million vehicle and export about 1.Economy and Industry Analysis 1/3 ‡ CMIE (centre for monitoring Indian Economy) has estimated GDP to expand at 9.2% in 2011-12 as compared to the growth of 7.5 million every year. the country is expected to top the world in car volume with approx 611 million vehicles on nation s road . ‡ By 2050.

694 2.511.755 1.332.253.39 19.35 10.Economy and Industry Analysis 2/3 YEAR 2009 2008 2007 2006 2005 2004 TOTAL VEHICLE PRODUCTION 2.808 1.13 .40 3.628.157 % CHANGE 11.22 23.632.999 2.328 2.36 7.019.

5 billion in 2009 ‡ India s automobile export are expected to cross $12 billion by 2014 . Nissan Motors India. Mahindra. Hyundai Motors. etc ..Economy and Industry Analysis 3/3 ‡ Indian automotive companies Hindustan Motors. TATA Motors etc. Mitsubishi. ‡ Foreign automotive companies in India Maruti Suzuki. ‡ India s automobile export have grown consistently & reached $ 4.

5 billion in2009-10 ‡ Dual listed company traded on both the Bombay Stock Exchange as well as New York Stock Exchange . founded in 1945 by JRD Tata ‡ Part of TATA group. formerly known as TELCO ‡ India s largest automobile company with consolidated revenues of USD 20.Introduction to Tata Motors 1/2 ‡ Multinational corporation.

2/2 ‡ Key people chairman .CEO Ratan Tata Carl Peter Forster vice chairman Ravi Kant .

‡ IN 2004. TATA MOTORS acquired 21% of Aragonese hispano carrocera giving it controlling right of the company ‡ IN 2007. TATA MOTORS acquired Daewoo's truck manufacturing unit..Acquisitions 1/2 . ‡ IN 2005. formed a joint venture with Marco polo of Brazil and introduced low floor buses in the Indian markets ..

2/2 ‡ IN 2008 TATA MOTORS acquired British Jaguar Land Rover ‡ IN 2010. . TATA MOTORS acquired 80% stake in Italy based design and engineering company Trilix. The acquisition is in line with the Company s objective to enhance its styling/ design capabilities to global standard.

the first fully indigenous passenger car of India.Rise of Tata Motors ‡ Tata launched the Indica in 1998. powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of Indian Automobile Industry. the car excellent fuel economy. The success of Indica in many ways marked the rise of Tata Motors . Though the car was initially panned by auto-analyst.

028.52 1.913.92 1.178.240.528.88 1.26 2.51 3.030.001.79)% 95% ‡ Net Profit 1.5% 42% (19.10 4.Profit Analysis Mar '06 Mar '07 Mar '08 Mar '09 (IN CRORES) Mar '10 ‡ Operating Profit 2.586.36 2.146.723.08 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2006 2007 2008 2009 2010 operating profit net profit .28 ‡ % change from 2006 -20.46 2.

Financial Results (In Crores) items 1.08 1685.20% 145.05 31414.54 589.07 2008-09 28568.73 4927.07 2399.46 2240.A.57% 138.28 1853. tax expenses 10. EBITDA 7.26 383.61% . profit abter tax 11. gross revenue 2.89 2829.21 25629.44 1752.76 12.991 3926. total expenditure 4.87% 31. balance from previous year 12. operating profit 5. profit before tax 9.73% 340.13% 63.68% 123.11% 4615.621 % change 34. amount for appropriation 2009-10 38364.73 1013.16% 125.5 1001.1 35593.45 6031. cash profit 8. net revenue 3. Other income 6.77 4178.44 925.29% 38.97 2678.73 23877.43% 100.41 2004.81% 179.

8 100.13 345.94 1934.99 . dividend including tax 4. debenture redemption reserve 2.Appropriation (In Crores) Items 1. balance carried to balancesheet 2009-10 500 500 991. general reserve 3.13 2008-09 267.7 1685.

852.259. by 72.575.90) (953. Singapore has redeemed preference shares of Rs.877.968.2 16. Singapore.90 13. 2009 i.06 2.60 crores in equity and preference shares of TML Holdings Ltd.336.796.04 14.Fixed assets 2009-10 Gross Fixed Assets Accumulated Depreciation Total 2008-09 Change % 23.16 1.02) 15.10.90 crores as at March 31. 2010 as compared to Rs.88 12.212. The Company has invested Rs. TML Holdings Ltd.843.13 crores as at March 31.6 Investments increased to Rs.16 crores.92) (6. Further. The Company sold part of its investments in Tata Steel Ltd and 20% stake in Telco Construction Equipment Co.436.592.648.4 (7.96 20.22.e.24%. Ltd. . which in turn prepaid the bridge loan taken for acquisition of Jaguar and Land Rover business.12.

19) 69.61) (1.537.97) (6.697.136.67) (4. Loans and Advances Current Liabilities Provisions Net Current Assets 2008-09 Change % 11.48) 32.Current Assets 2009-10 Current Assets.997.011.9 (14.9 (5.94) 413.609.078.763.98 9.95) (684.540.834.43) (2.73 20.3 .25 1.9 (2.597.16) (8.

77 11.71 3.06 0.58 1.RATIO ANALYSIS Investment Valuation Ratios Face Value Dividend Per Share Profitability Ratios Operating Profit Margin(%) Net Profit Margin(%) Mar '08 Mar '09 Mar '10 10 15 10 6 10 15 10.11 .66 0.41 9.64 0.96 6.8 0.44 1.74 6.44 0.44 0.66 0.53 6.96 6.26 Return On Capital Employed(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio 18.

Mar '08 Mar '09 Mar '10 Earnings Per Share Book Value 52.48 240.7 19.64 39.3 .26 262.63 202.

060.26 36.66 7. cr.83 .60 65.18 1.12 35.66 49.240.) Sales Net Profit Total Turnover (Rs.36 23. (Rs.42 3. cr.) (Rs.13 14.46 274. cr.073.08 31.71 423. cr.53 413.93 341.857.69 378.85 2.01 37.) EPS PE Ratio Tata Motors Ashok Leyland Eicher Motors SML Isuzu 1.68 5.23 21.30 493.00 6.591.518.) Assets (Rs.76 15.05 2.08 13.Competitors Analysis Last Price Market Cap.593.936.244.30 76.38 39.606.92 722.

Stock analysis 1/3 .

Stock analysis 2/3 .

25 893.55 -12.00 218.2 1269.45 65.21 .05 1190.55 439.7 673.37 24.25 Price Gain 43.00 Gain in % 4.20 -77.95 -157.Stock analysis 3/3 Period One Week One Month Three Month Six Month One Year Period Old Price 1069.04 -6.

‡ TATA motors is expanding its network in International market by aggressively acquiring foreign companies. ‡ TATA motors has been famous to introduce new vehicles. 31. During this period it had produced more than 3 million vehicles which is huge achievement for the company ‡ It is India largest automobile company with total asset of Rs.SWOT ANALYSIS Strength ‡ One of the leading company in automobile industry with more than 70 years of experience. this is possible just because of the strong research and development .38crores in 2010.591.

Weaknesses ‡ Shareholders of TATA motors are not getting much from their investments due to low ROI ‡ The thing which customer not like about TATA motors vehicles is weak safety standards. ‡ Joint venture and acquisition in other countries. ‡ Incorporate safety features in the vehicles to gain more customer satisfaction and exploit the opportunity by entering into the third world countries. . Opportunities ‡ As it is low cost vehicle product so it can take the advantage of this strength to exploit the opportunity by entering into the third world countries.

plastic. rubber is rising which also raise the total production cost of vehicle. . If the competitors will follow the same strategy then it may reduce the sales of TATA motors. ‡ TATA motors has cost advantage over its competitors.Threats ‡ The prices of material such as steel. ‡ Rising prices of petrol and diesel .

Recommendation ‡ Right time to buy the stock of TATA Motors for long term investor as the company is really doing very good in terms of financial result and also declaring a good dividend of Rs 15 per share which may attract the investor. ‡ For short term investor probably this in not the right time as the currently the price are decreasing so the investor have to think before investing .

THANK YOU . ..

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