Tata Motors Ltd – Stock Analysis

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Short Stock Analysis of Tata Motors Ltd


Tata Motors is making all the right turns in FY21. Rising demand for personal mobility reported more than 15% year-on-year growth in Sales Volume of Tata Motors in FY21 so far (April-November). Let us do short analysis of Tata Motors stock in this blog.

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Tata Motors Stock Analysis

Tata Motors beating the industry average auto sales

  • Company has outpaced industry sales growth despite 2 months complete lock down in April’20 and May’20.
  • This growth is mainly on the back of new top performing utility vehicles like Nexon and Harrier and Hatchbacks like Tiago and Altroz.
  • Company has taken aggressive advertising of these launches which has translated into healthy sales.
  • Currently, company has an order book of 30,000 – 35,000 units mainly for Altroz, Tiago and Nexon.
Industry Auto Sales growth vs Tata Motors Auto Sales growth

Performance in FY21

  • From April’20 – Nov’20, company recorded sales of 1.13 lakh vehicles, recording a 15% YoY growth. Also with company’s target to sell >25,000 units every month by Q4FY21, it is expected that company will record a volume growth of 30-40% in FY21.
Tata Motors Performance in FY21
Strong Gain in Market Share
  • Along with robust volume growth, company has also gained market share in recent times.
  • Currently company has third largest market share of 8% in Auto industry, with Maruti Suzuki and Hyundai at first and second position respectively.
  • Also if we consider only the passenger and utility vehicles, company’s market share is > 10% with robust sales of Nexon, Harrier, Tiago, Altroz, etc.
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Future Outlook

  • Company has undertaken robust sales of >20,000 units every month in the last 3 consecutive months and it is targeting sales of >25,000 units every month by Q4FY21.
  • Another ambitious target that the company has is to sell >40,000 units per month is next fiscal year i.e FY22.
  • Company is planning to fulfill this target by making two new launches in the next year i.e Hornbill ,which is a new Micro SUV and Gravitas which is a top-of-the line SUV.
  • Company’s future outlook looks bright on the back of pent up demand as well as rising demand for personal mobility.
  • Also the increased preference of consumers towards safety feature is auguring well for company’s sales.

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