Stay updated with the latest trends and insights on Tata Motors Share Price. Our comprehensive analysis covers historical data, market trends, and future projections to help you make informed investment decisions. Explore the dynamics influencing Tata Motors Share Price and stay ahead in the stock market game.
Understanding the dynamics of the Tata Motors share price is crucial for investors and market enthusiasts interested in the automotive industry. Tata Motors, a leading name in the global automotive sector, is part of the prestigious Tata Group and is listed on major Indian stock exchanges, including the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). The Tata Motors share price reflects the company’s market performance, influenced by various factors such as production output, sales figures, global economic conditions, and strategic business decisions.
Tracking the Tata Motors share price can provide valuable insights into the company’s financial health and growth prospects. Investors closely monitor fluctuations in the Tata Motors share price to make informed decisions about buying, holding, or selling their shares. Additionally, the Tata Motors share price is a critical indicator of the company’s standing within the automotive industry, both in India and internationally.
In this article, we will explore the factors that influence the Tata Motors share price, historical trends, and future projections. Whether you are a seasoned investor or new to the stock market, understanding the Tata Motors share price can help you navigate your investment strategy more effectively.
Table of Contents
Tata Motors Limited, headquartered in Mumbai, is an Indian multinational automotive giant and a part of the Tata Group. The company manufactures a wide range of vehicles, including cars, trucks, vans, and buses. Among its notable subsidiaries are the prestigious British Jaguar Land Rover and South Korean Tata Daewoo. Additionally, Tata Motors has established joint ventures with Hitachi, resulting in Tata Hitachi Construction Machinery, and with Stellantis, producing vehicle parts for Fiat Chrysler and Tata-branded vehicles.
Tata Motors operates manufacturing plants in several Indian cities: Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune. Beyond India, its manufacturing footprint extends to Argentina, South Africa, the United Kingdom, and Thailand. The company also maintains research and development centers in India (Pune, Jamshedpur, Lucknow, Dharwad), as well as in South Korea, the United Kingdom, and Spain. Tata Motors is publicly traded on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), and is a key component of the BSE SENSEX and NIFTY 50 indices. In 2019, it was ranked 265th on the Fortune Global 500 list of the world’s largest corporations.
In a notable leadership move, Natarajan Chandrasekaran was appointed chairman of Tata Group on January 17, 2017. Under his guidance, Tata Motors saw its market share in the utility vehicle (UV) segment rise to over 8% in the fiscal year 2019.
Founded in 1945 as a locomotive manufacturer, Tata Motors entered the commercial vehicle market in 1954 through a joint venture with Germany’s Daimler-Benz, establishing a manufacturing facility in Jamshedpur. The first product of this venture was a goods carrier chassis, introduced in November 1954, featuring a 90-100 hp engine with a 3-5 ton capacity. After years of leading the commercial vehicle market in India, Tata Motors expanded into passenger vehicles in 1991 with the launch of the Tata Sierra, followed by the Tata Estate in 1992, the Tata Sumo in 1994, and the Tata Safari in 1998.
In 1998, Tata Motors introduced the Indica, a car that later saw an updated version, the Indica V2. The company also began exporting cars to South Africa. The 2000s marked a period of significant growth through acquisitions and partnerships, including Daewoo’s South Korean truck manufacturing unit, a joint venture with Brazil’s Marcopolo, Tata Marcopolo Bus, and the acquisition of Jaguar Land Rover. Additionally, Tata Motors acquired Hispano Carrocera and an 80% stake in the Italian design and engineering firm Trilix.
On October 12, 2021, private equity firm TPG invested $1 billion in Tata Motors’ electric vehicle subsidiary, underscoring the company’s commitment to sustainable mobility.
Subsidiaries of Tata Motors Limited
- Jaguar Land Rover (JLR): Acquired in 2008, this British luxury car manufacturer produces high-end vehicles under the Jaguar and Land Rover brands.
- Tata Daewoo: Based in South Korea, this subsidiary specializes in manufacturing heavy trucks and buses.
- Tata Hitachi Construction Machinery: A joint venture with Hitachi, focusing on construction equipment like excavators and loaders.
- Tata Motors European Technical Centre (TMETC): Located in the UK, this R&D facility supports advanced automotive engineering and design.
- Tata Hispano Motors Carrocera: Although it ceased operations in 2013, this Spanish bus and coach manufacturer contributed to Tata’s expertise in bus manufacturing.
- Tata Marcopolo Motors: A joint venture with Brazil’s Marcopolo, producing buses and coaches.
- TML Drivelines Limited: Manufactures and supplies axles and transmissions for Tata Motors’ vehicles.
- Concorde Motors India Limited: The retail arm for Tata Motors, managing sales and service operations in India.
- Tata Motors Finance Limited (TMFL): Provides financial solutions to support the purchase of Tata Motors’ vehicles.
- Trilix S.r.l.: An Italian design and engineering company, 80% owned by Tata Motors, contributing to vehicle design and development.
Share Holding Pattern of Tata Motors Limited
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 46.36%
- FII (Foreign Institutional Investor) Shareholding: 19.20%
- DII (Domestic Institutional Investor) Shareholding: 6.58%
- MF (Mutual Fund) Shareholding: 9.50%
- Retail and Others: 18.36%
Tata Motors Limited, a prominent player in the automotive industry, undergoes thorough scrutiny through fundamental analysis to provide investors with valuable insights into its financial health and performance. Let’s delve into each aspect of Tata Motors’ fundamental analysis for a comprehensive understanding.
Fundamental Analysis of Tata Motors Limited | ||||
Ratio | March 2024 | March 2023 | March 2022 | March 2021 |
Profitability Ratio | ||||
Gross Profit Margin | 37.30% | 40.08% | 20.66% | 23.47% |
Net Profit Margin | 10.78 | 4.14 | -2.94 | -7.93 |
Return on Equity (ROE) | 36.98% | 10.74% | -25.68% | -24.35% |
Liquidity Ratio | ||||
Current Ratio | 0.970 | 0.446 | 0.975 | 0.931 |
Quick Ratio (Acid-Test Ratio) | 0.695 | 0.328 | 0.742 | 0.702 |
Solvency Ratio | ||||
Debt to Equity Ratio | 1.17 | 0.844 | 3.13 | 2.47 |
Interest Coverage Ratio | 4.14 | -2.20 | 0.248 | -0.294 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 10.73 | 10.83 | 6.19 | 5.20 |
Account Receivable Turnover Ratio | 45.17 | 149.92 | 37.76 | 33.34 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 12.12 | 57.89 | -14.52 | -8.16 |
Price to Book Ratio (P/B) | 4.09 | 6.22 | 3.40 | 1.93 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 81.93 | 7.27 | -29.88 | -36.99 |
Revenue Growth | 74,452.96 | 66,578.27 | 47,923.59 | 30,595.02 |
Profitability Ratio
Gross Profit Margin:
The gross profit margin indicates the percentage of revenue retained after deducting the cost of goods sold. Tata Motors’ gross profit margin for March 2024 stood at 37.30%, showcasing a slight decrease from the previous year. While this decline suggests a potentially tighter margin, it’s essential to consider the factors influencing it, such as material costs, production efficiency, and pricing strategies.
Net Profit Margin:
The net profit margin reflects the company’s profitability after accounting for all expenses, including operating costs, taxes, and interest. Tata Motors witnessed a notable improvement in net profit margin, reaching 10.78% in March 2024 compared to 4.14% in March 2023. This significant enhancement indicates improved operational efficiency and cost management, leading to higher earnings for shareholders.
Return on Equity (ROE):
Return on equity (ROE) measures the profitability of a company in relation to its shareholders’ equity. Tata Motors exhibited a remarkable increase in ROE, soaring to 36.98% in March 2024. This surge signifies that Tata Motors effectively utilized shareholders’ funds to generate profits, thereby enhancing investor confidence and potentially attracting new investments.
Liquidity Ratio
Current Ratio:
The current ratio assesses a company’s ability to meet its short-term liabilities with its current assets. Tata Motors’ current ratio improved slightly to 0.970 in March 2024, indicating a better capacity to cover short-term obligations. However, it still falls below the ideal threshold of 1, suggesting potential liquidity challenges that require attention.
Quick Ratio (Acid-Test Ratio):
The quick ratio measures a company’s ability to meet immediate financial obligations using its most liquid assets. Tata Motors’ quick ratio also improved but remained below 1 at 0.695 in March 2024, indicating that the company may face difficulties in meeting short-term liabilities solely with its liquid assets. This underscores the importance of prudent financial management to ensure liquidity stability.
Solvency Ratio
Debt to Equity Ratio:
The debt to equity ratio evaluates the proportion of debt used to finance Tata Motors’ operations relative to shareholders’ equity. Tata Motors’ debt to equity ratio increased to 1.17 in March 2024, suggesting a higher reliance on debt financing. While some level of debt can be beneficial for growth and expansion, a high debt ratio may raise concerns regarding financial risk and debt servicing capability.
Interest Coverage Ratio:
The interest coverage ratio measures Tata Motors’ ability to fulfill interest obligations on its debt using its earnings before interest and taxes (EBIT). The improvement to 4.14 in March 2024 indicates that Tata Motors’ earnings are sufficient to cover interest expenses comfortably. This enhanced coverage ratio reflects reduced financial risk and increased financial stability.
Efficiency Ratio
Inventory Turnover Ratio:
The inventory turnover ratio assesses how efficiently Tata Motors manages its inventory by measuring how quickly it sells and replaces inventory. Despite minor fluctuations, Tata Motors maintained a relatively stable inventory turnover ratio, indicating efficient inventory management practices.
Accounts Receivable Turnover Ratio:
The accounts receivable turnover ratio evaluates Tata Motors’ effectiveness in collecting payments from its customers. The decline in the accounts receivable turnover ratio suggests potential challenges in timely receivables collection, which could impact cash flow and liquidity.
Valuation Ratio
Price to Earnings Ratio (P/E):
The price to earnings ratio compares Tata Motors’ current share price to its earnings per share (EPS), indicating investors’ willingness to pay for each unit of earnings. The P/E ratio improved to 12.12 in March 2024, signaling positive investor sentiment towards Tata Motors’ earnings potential.
Price to Book Ratio (P/B):
The price to book ratio assesses Tata Motors’ market value relative to its book value, providing insights into the company’s valuation. Despite fluctuations, Tata Motors’ P/B ratio remained elevated, indicating a premium valuation compared to its book value.
Growth Ratio
Earnings per Share (EPS) Growth:
The EPS growth reflects the rate at which Tata Motors’ earnings per share have grown over time. Tata Motors witnessed substantial EPS growth of 81.93% in March 2024, driven by improved profitability and operational efficiency.
Revenue Growth:
The revenue growth showcases Tata Motors’ ability to increase its top line over successive periods. With revenue soaring to 74,452.96 units in March 2024, Tata Motors demonstrated robust business performance and expansion efforts, reflecting positively on its growth prospects.
In conclusion, Tata Motors’ fundamental analysis reveals a mixed performance across various financial metrics, highlighting strengths and areas for improvement. Investors should conduct further research and analysis to make well-informed investment decisions based on their risk tolerance and investment objectives.
Technical Analysis of Tata Motors Share Price
Technical analysis of Tata Motors Share Price involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for Tata Motors Share Price. The main goal of technical analysis of Tata Motors Share Price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 21st May 2024 for technical analysis of Tata Motors Limited.
Price Action
Price action and price level of Tata Motors Share Price | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Doji Candlestick pattern | Inside Bar Candlestick pattern | Red Bearish Candlestick is forming |
Chart Pattern | Strong Consolidation Pattern | Strong Consolidation Pattern | Continuous Bullish Pattern |
Price Support Level | 915-930 | 880-900 | 800-850 |
Price Level | 954 is Current Price | 52 weeks High 1065.60 | 52 weeks low 504.75 |
Analysing the price action and price levels of Tata Motors Share Price provides valuable insights for investors and traders, guiding their decision-making process. Let’s delve into the details of Tata Motors Share Price performance across different timeframes and chart patterns:
Daily Timeframe
Candlestick Pattern:
On the daily timeframe, Tata Motors Share Price has been exhibiting a Doji Candlestick pattern for the past three days. This pattern indicates indecision in the market, with the closing price hovering around the opening price. Notably, since February 2024, Tata Motors Share Price has been establishing a robust support level between 920-925, with the price rebounding from this level on the 16th of May. This consistent behaviour suggests a strong base formation, potentially signalling a bullish reversal.
Chart Pattern:
The daily chart reveals a Strong Consolidation Pattern, with Tata Motors Share Price consolidating for over 90 days. This prolonged consolidation phase often precedes significant price movements, indicating that Tata Motors Share Price may be poised for a reversal or breakout in the near future.
Price Support Level:
Key support levels for Tata Motors Share Price on the daily timeframe lie between 915-930, indicating a strong support zone where buying pressure may emerge, preventing further downside movement.
Weekly Timeframe
Candlestick Pattern:
On the weekly timeframe, Tata Motors Share Price formed an Inside Bar Candlestick pattern recently. Last week saw the formation of a red long weak setting rejection candle, followed by Tata Motors Share Price opening inside the previous week’s candle this week. This Inside Bar pattern signals strong consolidation in the market, with a potential breakout or reversal on the horizon.
Chart Pattern:
Similar to the daily timeframe, Tata Motors Share Price is exhibiting a Strong Consolidation Pattern on the weekly chart. If the price opens above the closing level of the current week, there is a high probability of Tata Motors Share Price touching its 52-week high soon, indicating bullish sentiment among traders and investors.
Price Support Level:
Crucial support levels for Tata Motors Share Price on the weekly timeframe are in the range of 880-900, providing a significant level where buyers may step in to support the price.
Monthly Timeframe
Candlestick Pattern:
The monthly timeframe reveals the formation of a Red Bearish Candlestick, indicating a corrective phase in the market. This correction is considered healthy after a prolonged uptrend, with Tata Motors Share Price experiencing a correction of almost 14%. However, it’s essential to monitor price action closely for any signs of trend reversal or continuation.
Chart Pattern:
On the monthly chart, Tata Motors Share Price is displaying a Continuous Bullish Pattern, with the price embarking on a rally from 400. While a small correction is observed, it can be viewed as a time-wise and price-wise correction within the broader bullish trend.
Price Support Level:
In the worst-case scenario, Tata Motors Share Price has significant support levels between 800-850 on the monthly timeframe, providing a crucial zone where buyers may intervene to prevent further downside movement.
Price Levels
As of 21st May 2024, Tata Motors Share Price is trading around 954, indicating its current market value.
Tata Motors Share Price reached a high of 1065.60 in the past 52 weeks, representing its peak performance during this period.
The lowest price level Tata Motors Share Price touched in the last 52 weeks was 504.75, reflecting the bottom of its price range.
In conclusion, analysing the price action and price levels of Tata Motors Share Price across different timeframes provides valuable insights into market sentiment, potential reversal or breakout points, and key support and resistance levels. Traders and investors can use this information to formulate their trading strategies and make informed decisions based on their risk appetite and investment objectives.
Fibonacci Retracement Levels of Tata Motors Share Price
Fibonacci Retracement Levels of Tata Motors Share Price | |||||
Fibonacci Retracement Levels | 0.236 | 0.382 | 0.5 | 0.618 | 0.786 |
Tata Motors Share Price | 903.06 | 802.45 | 720.65 | 638.90 | 522.50 |
Fibonacci retracement levels play a crucial role in technical analysis, providing insights into potential support and resistance levels based on the Fibonacci sequence. Let’s examine the Fibonacci retracement levels of Tata Motors Share Price and their implications:
0.236 Level (23.6%): Tata Motors Share Price is likely to find short-term support around 903.06 at this level. This suggests that if the price experiences a pullback, it may find buying interest near this level, serving as a short-term support zone.
0.382 Level (38.2%): This level, at 802.45, represents a monthly chart support for Tata Motors Share Price. In extreme scenarios, if the price experiences a significant downturn, it may find support near this level. However, such occurrences are less likely and would signify a deeper correction in the market.
0.5 Level (50%): Tata Motors Share Price may encounter support around 720.65 at this level. Currently, there is a lower probability of the price reaching this level. However, if market conditions deteriorate significantly, Tata Motors Share Price could approach this level, indicating a substantial retracement from previous highs.
0.618 Level (61.8%): At 638.90, this level represents another potential support area for Tata Motors Share Price. Similar to the 0.5 level, the likelihood of reaching this level is relatively low at present. However, if bearish sentiment intensifies, Tata Motors Share Price may find support near this level before stabilizing.
0.786 Level (78.6%): Tata Motors Share Price may find support near 522.50 at this level. While there is currently less chance of the price reaching this level, it serves as a critical support level in the event of a significant market downturn. A breach below this level would indicate a considerable retracement from previous highs and could signal further downside potential.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in Tata Motors Share Price | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 1051 | 989 | 926 |
The Bollinger Bands, a popular technical analysis tool, provide insights into potential price levels and volatility in Tata Motors Share Price:
Tata Motors Share Price is encountering medium-term resistance around 1051, indicated by the upper band. This level suggests a significant hurdle for the price to surpass in the near future, potentially indicating a reversal or consolidation.
At 989, Tata Motors Share Price faces short-term resistance, as indicated by the median or middle band. This level may act as a barrier for further upside movement, requiring a strong catalyst to break through.
The lower band, currently at 926, serves as short-term support for Tata Motors Share Price. This level suggests a potential floor for the price, where buying interest may emerge, preventing further downside movement in the short term.
Moving Average (MA):
Moving Average price level in daily candlestick of Tata Motors Share Price | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 928 | 788 |
Exponential Moving Average (EMA) | 919 | 818 |
Simple Moving Average (SMA):
Tata Motors Share Price is finding short-term strong support around 928, indicated by the 100-day SMA. This level suggests a significant area where buying interest may emerge, potentially preventing further downside movement.
At 788, the 200-day SMA represents medium-term support for Tata Motors Share Price. This level serves as a crucial reference point for investors and traders, indicating a broader support zone.
Exponential Moving Average (EMA):
Tata Motors Share Price encounters short-term strong support around 919, as indicated by the 100-day EMA. This level signifies a robust area where buyers may step in to support the price, potentially leading to a rebound.
At 818, the 200-day EMA acts as medium-term support for Tata Motors Share Price. This level represents a broader support zone, indicating a potential floor for the price in the medium term.
Data Analysis
Open Interest Put Call Ratio of Tata Motors Ltd
Open Interest Put Call Ratio of Tata Motors Ltd | ||||
Expiry Date | Put Open Interest | Call Open Interest | PCR OI | Signal |
30/05/2024 | 41349.22 K | 112711 K | 0.367 | Strong Bullish |
27/06/2024 | 7291.73 K | 8916.23 K | 0.818 | Bearish |
The Open Interest Put Call Ratio (PCR OI) for Tata Motors Ltd indicates market sentiment. A PCR OI of 0.367 on 30/05/2024 suggests Strong Bullish sentiment as Put options open interest is significantly lower than Call options. Conversely, a PCR OI of 0.818 on 27/06/2024 indicates Bearish sentiment, as Put options open interest exceeds that of Call options. These ratios help investors gauge market sentiment and potential price direction.
Volume Put Call Ratio of Tata Motors Ltd
Volume Put Call Ratio of Tata Motors Ltd | ||||
Expiry Date | Put Total Contracts | Call Total Contracts | PCR Volume | Signal |
30/05/2024 | 8764.00 | 32279.00 | 0.272 | Strong Bullish |
27/06/2024 | 808.00 | 1509.00 | 0.535 | Bullish |
The Volume Put Call Ratio (PCR Volume) for Tata Motors Ltd indicates market sentiment. A PCR Volume of 0.272 on 30/05/2024 suggests Strong Bullish sentiment as there are significantly more Call contracts traded compared to Put contracts. Similarly, a PCR Volume of 0.535 on 27/06/2024 indicates Bullish sentiment, with more Call contracts traded relative to Put contracts. These ratios provide insights into investor sentiment and potential price direction.
Conclusion
In conclusion, the analysis of Tata Motors Share Price presents a compelling case for investment. Both fundamental and technical indicators suggest a bullish outlook, making Tata Motors an attractive option for investors.
Fundamentally, Tata Motors demonstrates improving profitability, liquidity, and solvency ratios, indicating a healthy financial position and efficient management. Additionally, growth ratios reflect the company’s potential for expansion and enhanced shareholder value.
Technically, various analyses such as price action, chart patterns, Fibonacci retracement levels, Bollinger Bands, and moving averages all signal positive momentum and potential upside for Tata Motors Share Price. Moreover, the open interest put call ratio and volume put call ratio support a bullish sentiment, affirming market confidence in the stock.
Taking into account these factors, Tata Motors emerges as a favourable investment opportunity, offering the potential for capital appreciation and long-term growth. However, investors should conduct their due diligence and consider their risk tolerance before making investment decisions. Overall, staying informed about the dynamics influencing Tata Motors Share Price is essential for navigating the stock market effectively and maximizing investment returns.
FAQs
- What factors influence Tata Motors Share Price?
Tata Motors Share Price is influenced by various factors including company performance, global economic conditions, industry trends, and market sentiment.
- Is Tata Motors a profitable investment?
Tata Motors can be a profitable investment, but it depends on individual investment goals, risk tolerance, and market conditions. Conduct thorough research before investing.
- How does technical analysis help in predicting Tata Motors Share Price?
Technical analysis uses historical price and volume data to forecast future price movements. It helps identify trends, support and resistance levels, and potential entry and exit points for trading.
- What are Fibonacci retracement levels and how are they used in Tata Motors Share Price analysis?
Fibonacci retracement levels are horizontal lines indicating potential support and resistance levels based on Fibonacci ratios. In Tata Motors Share Price analysis, they help identify key price levels for potential reversals or continuations.
- What is the significance of moving averages in Tata Motors Share Price analysis?
Moving averages smooth out price data to identify trends. They help traders and investors gauge the direction of Tata Motors Share Price movement and potential support and resistance levels.
- How can investors interpret the put call ratio for Tata Motors?
The put call ratio indicates market sentiment based on the ratio of put options to call options. A higher ratio suggests bearish sentiment, while a lower ratio indicates bullish sentiment.
- What role do Bollinger Bands play in Tata Motors Share Price analysis?
Bollinger Bands help identify potential overbought and oversold conditions in Tata Motors Share Price. They consist of three lines: upper band, lower band, and median. Breakouts from these bands can signal potential price movements.
- How does fundamental analysis contribute to understanding Tata Motors as an investment?
Fundamental analysis evaluates Tata Motors’ financial health, performance, and growth prospects. It involves analysing key financial ratios, earnings reports, and industry trends to assess the company’s intrinsic value.
- What is the importance of volume in Tata Motors Share Price analysis?
Volume reflects the level of trading activity in Tata Motors shares. High volume often accompanies significant price movements, indicating strong investor interest and potential trend reversals.
- How can investors stay updated on Tata Motors Share Price developments?
Investors can stay updated on Tata Motors Share Price developments through financial news websites, stock market apps, company announcements, and analyst reports. Additionally, following market trends and macroeconomic indicators can provide valuable insights.
