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Tata Motors Passenger Vehicles Ltd logo

Tata Motors Passenger Vehicles Ltd

NSE: TMPV BSE: 500570

304.20

(2.70%)

Sun, 05 Apr 2026, 05:30 am

Tata Motors Passenger Vehicles Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.8x coverage).
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Cons

  • Unable to calculate sustainability of dividends as Tata Motors has not reported any payouts.
  • Unable to evaluate Tata Motors's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Tata Motors's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

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Pros

  • Tata Motors's earnings are expected to grow significantly at over 20% yearly.
  • Tata Motors's earnings growth is expected to exceed the India market average.
  • Tata Motors's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Tata Motors is expected to become profitable in 3 years time.
  • Tata Motors is expected to become profitable in 2 years.
  • An improvement in Tata Motors's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Tata Motors is expected to decrease over the next 2 years.
  • Tata Motors is expected to be loss making next year.
  • Tata Motors is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Auto industry average.
  • Tata Motors's revenue is expected to decrease over the next 2 years.
  • Tata Motors's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
  • Tata Motors's revenue growth is positive but not above the India market average.

health

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Pros

  • Tata Motors has been profitable on average in the past, therefore cash runway is not a concern.
  • Tata Motors has been profitable on average in the past, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (33.3%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.2x debt.
  • Tata Motors's cash and other short term assets cover its long term commitments.
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Cons

  • Tata Motors's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (108% vs 180.2% today).
  • Tata Motors is making a loss, therefore interest payments are not well covered by earnings.
  • Tata Motors's level of debt (180.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Tata Motors board of directors is about average.
  • Guenter's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Guenter's remuneration is higher than average for companies of similar size in India.
  • The average tenure for the Tata Motors management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Tata Motors has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Unable to compare Tata Motors's 1-year earnings growth to the 5-year average as it is not currently profitable.
      • Tata Motors does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
      • Tata Motors used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
      • It is difficult to establish if Tata Motors improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
      • It is difficult to establish if Tata Motors has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
      • Unable to compare Tata Motors's 1-year growth to the IN Auto industry average as it is not currently profitable.

      value

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      Pros

      • Tata Motors's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Tata Motors's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Tata Motors is good value based on assets compared to the IN Auto industry average.
      • NSEI:TATAMOTORS is up 12.3% outperforming the Auto industry which returned 10.7% over the past month.
      • NSEI:TATAMOTORS is up 12.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Tata Motors is loss making, we can't compare its value to the IN Auto industry average.
      • Tata Motors is loss making, we can't compare the value of its earnings to the India market.
      • TATAMOTORS underperformed the Auto industry which returned -17.2% over the past year.
      • TATAMOTORS underperformed the Market in India which returned -14.5% over the past year.

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