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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

Economy and Industry Analysis


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CMIE (centre for monitoring Indian Economy) has estimated GDP to expand at 9.2% in 2011-12 as compared to the growth of 7.4% in 2009-2010 Automotive industry in India one of the largest & fastest growing globally Manufactures over 11 million vehicle and export about 1.5 million every year. By 2050, the country is expected to top the world in car volume with approx 611 million vehicles on nation s road

Economy and Industry Analysis


2/3 YEAR 2009 2008 2007 2006 2005 2004 TOTAL VEHICLE PRODUCTION 2,632,694 2,332,328 2,253,999 2,019,808 1,628,755 1,511,157 % CHANGE 11.40 3.35 10.39 19.36 7.22 23.13

Economy and Industry Analysis


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Indian automotive companies Hindustan Motors, Mahindra, TATA Motors etc.. Foreign automotive companies in India Maruti Suzuki, Mitsubishi, Nissan Motors India, Hyundai Motors, etc . India s automobile export have grown consistently & reached $ 4.5 billion in 2009 India s automobile export are expected to cross $12 billion by 2014

Introduction to Tata Motors


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Multinational corporation, founded in 1945 by JRD Tata Part of TATA group, formerly known as TELCO India s largest automobile company with consolidated revenues of USD 20.5 billion in2009-10 Dual listed company traded on both the Bombay Stock Exchange as well as New York Stock Exchange

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Key people
chairman - CEO

Ratan Tata

Carl Peter Forster

vice chairman
Ravi Kant

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

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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.

Rise of Tata Motors

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

Profit Analysis
Mar '06 Mar '07 Mar '08 Mar '09 (IN CRORES) Mar '10

Operating Profit 2,146.36 2,586.51 3,030.52 1,723.10 4,178.28 % change from 2006 -20.5% 42% (19.79)% 95% Net Profit 1,528.88 1,913.46 2,028.92 1,001.26 2,240.08
4500 4000 3500 3000 2500 2000 1500 1000 500 0 2006 2007 2008 2009 2010 operating profit net profit

A. Financial Results
(In Crores) items 1. gross revenue 2. net revenue 3. total expenditure 4. operating profit 5. Other income 6. EBITDA 7. cash profit 8. profit before tax 9. tax expenses 10. profit abter tax 11. balance from previous year 12. amount for appropriation 2009-10 38364.1 35593.05 31414.77 4178.28 1853.45 6031.73 4927.89 2829.54 589.46 2240.08 1685.991 3926.07 2008-09 28568.21 25629.73 23877.44 1752.44 925.97 2678.41 2004.73 1013.76 12.5 1001.26 383.07 2399.621 % change 34.29% 38.87% 31.57% 138.43% 100.16% 125.20% 145.81% 179.11% 4615.68% 123.73% 340.13% 63.61%

Appropriation

(In Crores) Items 1. debenture redemption reserve 2. general reserve 3. dividend including tax 4. balance carried to balancesheet 2009-10 500 500 991.94 1934.13 2008-09 267.8 100.13 345.7 1685.99

Fixed assets 2009-10 Gross Fixed Assets Accumulated Depreciation Total

2008-09 Change

23,648.96 20,852.06 2,796.90 13.4 (7,212.92) (6,259.90) (953.02) 15.2 16,436.04 14,592.16 1,843.88 12.6

Investments increased to Rs.22,336.90 crores as at March 31, 2010 as compared to Rs.12,968.13 crores as at March 31, 2009 i.e. by 72.24%. The Company has invested Rs.10,575.60 crores in equity and preference shares of TML Holdings Ltd, Singapore, which in turn prepaid the bridge loan taken for acquisition of Jaguar and Land Rover business. Further, TML Holdings Ltd, Singapore has redeemed preference shares of Rs.877.16 crores. The Company sold part of its investments in Tata Steel Ltd and 20% stake in Telco Construction Equipment Co. Ltd.

Current Assets

2009-10 Current Assets, Loans and Advances Current Liabilities Provisions Net Current Assets

2008-09

Change

11,537.98 9,540.25

1,997.73 20.9

(14,609.16) (8,597.97) (6,011.19) 69.9 (2,763.43) (2,078.95) (684.48) 32.9 (5,834.61) (1,136.67) (4,697.94) 413.3

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

10.53 6.96

6.71 3.77

11.74 6.26

Return On Capital Employed(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio

18.96

6.41

9.66

0.64 0.66 0.8

0.44 0.58 1.06

0.44 0.44 1.11

Mar '08

Mar '09

Mar '10

Earnings Per Share Book Value

52.63 202.7

19.48 240.64

39.26 262.3

Competitors Analysis
Last Price Market Cap. (Rs. cr.) Sales Net Profit Total Turnover (Rs. cr.) Assets (Rs. cr.) (Rs. cr.) EPS PE Ratio

Tata Motors Ashok Leyland Eicher Motors SML Isuzu

1,073.60 65,606.12 35,593.05 2,240.08 31,591.38

39.26

36.66

49.00

6,518.66

7,244.71

423.68

5,936.76

15.42

3.18

1,060.85

2,857.69

378.01

37.53

413.30

76.08

13.93

341.30

493.92

722.23

21.46

274.36

23.13

14.83

Stock analysis
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Stock analysis
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Stock analysis
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Period

One Week

One Month

Three Month

Six Month

One Year

Period Old Price

1069.05

1190.2

1269.25

893.7

673.25

Price Gain

43.20

-77.95

-157.00

218.55

439.00

Gain in %

4.04

-6.55

-12.37

24.45

65.21

SWOT ANALYSIS
Strength One of the leading company in automobile industry with more than 70 years of experience. 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. 31,591.38crores in 2010. TATA motors is expanding its network in International market by aggressively acquiring foreign companies. TATA motors has been famous to introduce new vehicles, this is possible just because of the strong research and development

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. 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. Incorporate safety features in the vehicles to gain more customer satisfaction and exploit the opportunity by entering into the third world countries. Joint venture and acquisition in other countries.

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

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 ..