Tata Motors Limited (TATAMOTORS) AI Stock Analysis

• Market Cap: ₹2.61T
• Dividend Yield: 0.85%
• Average Volume (3M): 770.56K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.33
• Revenue Growth: -1.08%
• EPS Growth: -34.23%
• Country: IN
• Employees: 91,496
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 10.65
• Shares Outstanding: 3,682,016,400
• 10 Day Avg. Volume: 816,334
• 30 Day Avg. Volume: 770,561
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹724.20
• Price Target Upside: 2.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: ₹780.00 ▲(10.16% Upside)

Tata Motors Limited scores well due to strong financial performance and attractive valuation. Positive technical indicators further support the stock's potential. However, high debt levels and operational efficiency variability are risks to monitor.

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 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 gross profit margin and consistent revenue growth, with improved net profit margin. However, fluctuating EBIT and EBITDA margins indicate potential volatility. The balance sheet is solid with improving debt-to-equity ratio, but high total debt poses leverage risk. Cash flow is robust, with positive free cash flow growth, though past variability highlights management challenges.

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	4.43T	4.46T	4.35T	3.43T	2.75T	2.48T
Gross Profit	1.58T	1.77T	1.49T	1.05T	1.13T	817.57B
EBITDA	620.26B	621.19B	645.11B	381.42B	262.46B	193.75B
Net Income	228.30B	281.49B	313.99B	24.14B	-114.41B	-142.70B
Balance Sheet
Total Assets	3.79T	3.79T	3.71T	3.36T	3.31T	3.34T
Cash, Cash Equivalents and Short-Term Investments	615.48B	615.48B	592.17B	513.76B	630.25B	650.97B
Total Debt	715.40B	715.40B	1.10T	1.37T	1.48T	1.46T
Total Liabilities	2.56T	2.56T	2.78T	2.83T	2.82T	2.82T
Stockholders Equity	1.16T	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: Positive
• Last Price: 708.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 708.05 is above the 20-day moving average (MA) of 698.39, above the 50-day MA of 683.43, and above the 200-day MA of 694.98, indicating a bullish trend. The MACD of 9.73 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 55.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TATAMOTORS.

Tata Motors Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATAMOTORS	76 Outperform	₹2.61T	12.35		0.85%	-1.08%	-34.23%
BAJAJ.AUTO	75 Outperform	2.50T	33.37	20.82%	2.34%	12.27%	-4.25%
M&M	74 Outperform	4.47T	29.59	16.78%	4.06%	17.72%	24.18%
HYUNDAI	71 Outperform	2.28T	40.05	34.61%	0.75%	-2.62%	-11.26%
MARUTI	70 Outperform	4.99T	34.22	15.07%	0.85%	7.53%	-2.90%
EICHERMOT	69 Neutral	1.91T	39.23	22.23%	1.00%	15.21%	15.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.