The document provides an overview of Tata Motors including general facts about the company, its mission and vision, subsidiaries, manufacturing locations, and dealership network. It also includes analyses of the political, economic, social, and technological factors impacting Tata Motors. Ratio analyses are presented covering profitability, liquidity, leverage, and valuation metrics for Tata Motors compared to competitors like Ford, GM, and Mahindra. The analyses show Tata Motors has struggled recently with negative profit margins but maintains better asset turnover than peers.
Presentation is about TATA MOTORS,
-World’s today is fast paced, intermediate, world where people are asking for new answer mobility, India’s leading automotive company Tata motors is surging ahead with innovative solution.
Tata Motors Limited is India's largest automobile company. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments.
The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer.
Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. Therefore Tata Motors Limited is always committed to understanding customer needs.
Presentation is about TATA MOTORS,
-World’s today is fast paced, intermediate, world where people are asking for new answer mobility, India’s leading automotive company Tata motors is surging ahead with innovative solution.
Tata Motors Limited is India's largest automobile company. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments.
The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer.
Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. Therefore Tata Motors Limited is always committed to understanding customer needs.
This is one complete analysis of Financial Statements of Tata Motors. It includes Ratio analysis, Trend analysis, common size statement as well as comparative income statement and cash flow statement.
Tata Motors in the year 2008 acquired two of the most recognized premium segment car brand - Jaguar & Land Rover for a price tag of $2.5 billion. This presentation tells you about the history of Tata Motors, Jaguar and Land Rover, details of the deal, key motives of the merger, challenges in the merger, and both the companies current stage.
Following is a valuation of Tata motors submitted for Stage 2, Holt Valuation challenge.
Awarded the Status of HOLT Champion.
Students certified as HOLT Champion are the best performers in the HOLT Valuation
Challenge.
Rewarded the Paid License of HOLT Lens Software developed by Credit Suisse until i graduate.
What is the HOLT Valuation Challenge?
Stage 1 – The HOLT Challenge stage 1 is a three-week game that will help you learn or improve your understanding of accounting, finance and valuation.
Stage 2 - You could qualify to participate in the 2nd round of the challenge; you will be asked to submit a video presentation to showcase your finance knowledge by preparing a stock pitch that will be evaluated by Credit Suisse professionals and members of Project Firefly’s Academic Review Board.
Stage 3 - The best participants will be invited to stage 3, an interview with Credit Suisse and affiliates: You will be invited to interview with Credit Suisse and affiliates for 1 of 10 internship or co-op positions in 2016.
http://www.holtvaluationchallenge.com/less
Hiii guys this ppt describes the whole picture of TVS motors a leading two wheeler manufacturer in india where each and everything is included with few graphical effects...a good ppt to know about the company
In this report you will be came to know about Tata Steel - when it was formed its future plans , its financial position based on the ratio analysis being done on the basis of their 3 years balance sheet and conclusion of the analysis
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
Content page:
1. Source problems ……………………………………………………………….. 2
2. Secondary problems …………………………………………………………... 2
3. Analysis ………………………………………………………………………….. 3
3.1 SWOT Analysis …………………………………………………………….. 3
3.2 Porter 5 Forces Analysis …………………………………………………. 4
3.3 Data Analysis ……………………………………………………………….. 5
4. Criteria of Evaluation …………………………………………………………... 7
5. Alternative Strategies ………………………………………………………….. 8
6. Recommendations ……………………………………………………………… 10
7. Justification of Recommendations ………………………………………….. 11
8. Implementations ………………………………………………………………… 12
9. References ……………………………………………………………………….. 13
1. Source Problem
Tata Group is a biggest company in India and the headquartered office is set in Mumbai. Tata Motor is one of the subsidiaries which is belong to Tata group, and Tata Motor is engaging the automotive business. Furthermore, they possess numerous different kinds of cars or vehicles which provide in local and international market, such as commercial, passengers, trucks and military. On the other hand, the major problems of Tata Motor is about the management inside their organization.
2. Secondary Problems
According to the news, that Tata Motor faced the serious issue that Tata Nano has burned and flamed on the road (Mishra, 2010). In this reason, that could directly lead to the company income and sale decreased and also affect to the company fame. Moreover, as this influence, Tata might create the public stigma about that the company provide a poor man’s car, although, Tata would like to introduce their products as an affordable, all-weather, family car (IOL Motoring, 2012).
Tata only owns a traditional design of vehicles. Currently, Tata Motors tries to retrieve the first position of car supplier in the domestic market, and they are also looked for the international market by applying the new programme 2020 which consist of new technical vehicles. However, there could own a high risk for Tata reaches a goal because of the global competition.
3. Analysis
SWOT Analysis
Strength
Weakness
· The biggest automobile industry in India. In the world, it is 17th of motor vehicle manufacturing, 4th of truck manufacturing, and 2nd of bus manufacturing.
· The first company introduces the budget car - “Tata Nano” and with low fuel consumption.
· Huge number of employees, and multiple line of products.
· Strong marketing, expand to other countries. Moreover, the productions and assembly plants extent to South Africa, Jamshedpur, Thailand, Argentina and United Kingdom.
· Corporate Social Responsibility – Tata Motors
· Strong team management with experience of CEO, CFO and COO
· Lack design of vehicles – conventional fuel of vehicles.
· The raw materials are uncontrollable.
· Tata Motor does not own the luxury car segmentation in the local market, even though, they purchase the Jaguar and Land Rover.
· Weak market skills
· Invest on Tata Motor share which with a low returns.
Opportunity
Threat
· India government policy support.
This is one complete analysis of Financial Statements of Tata Motors. It includes Ratio analysis, Trend analysis, common size statement as well as comparative income statement and cash flow statement.
Tata Motors in the year 2008 acquired two of the most recognized premium segment car brand - Jaguar & Land Rover for a price tag of $2.5 billion. This presentation tells you about the history of Tata Motors, Jaguar and Land Rover, details of the deal, key motives of the merger, challenges in the merger, and both the companies current stage.
Following is a valuation of Tata motors submitted for Stage 2, Holt Valuation challenge.
Awarded the Status of HOLT Champion.
Students certified as HOLT Champion are the best performers in the HOLT Valuation
Challenge.
Rewarded the Paid License of HOLT Lens Software developed by Credit Suisse until i graduate.
What is the HOLT Valuation Challenge?
Stage 1 – The HOLT Challenge stage 1 is a three-week game that will help you learn or improve your understanding of accounting, finance and valuation.
Stage 2 - You could qualify to participate in the 2nd round of the challenge; you will be asked to submit a video presentation to showcase your finance knowledge by preparing a stock pitch that will be evaluated by Credit Suisse professionals and members of Project Firefly’s Academic Review Board.
Stage 3 - The best participants will be invited to stage 3, an interview with Credit Suisse and affiliates: You will be invited to interview with Credit Suisse and affiliates for 1 of 10 internship or co-op positions in 2016.
http://www.holtvaluationchallenge.com/less
Hiii guys this ppt describes the whole picture of TVS motors a leading two wheeler manufacturer in india where each and everything is included with few graphical effects...a good ppt to know about the company
In this report you will be came to know about Tata Steel - when it was formed its future plans , its financial position based on the ratio analysis being done on the basis of their 3 years balance sheet and conclusion of the analysis
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
Content page:
1. Source problems ……………………………………………………………….. 2
2. Secondary problems …………………………………………………………... 2
3. Analysis ………………………………………………………………………….. 3
3.1 SWOT Analysis …………………………………………………………….. 3
3.2 Porter 5 Forces Analysis …………………………………………………. 4
3.3 Data Analysis ……………………………………………………………….. 5
4. Criteria of Evaluation …………………………………………………………... 7
5. Alternative Strategies ………………………………………………………….. 8
6. Recommendations ……………………………………………………………… 10
7. Justification of Recommendations ………………………………………….. 11
8. Implementations ………………………………………………………………… 12
9. References ……………………………………………………………………….. 13
1. Source Problem
Tata Group is a biggest company in India and the headquartered office is set in Mumbai. Tata Motor is one of the subsidiaries which is belong to Tata group, and Tata Motor is engaging the automotive business. Furthermore, they possess numerous different kinds of cars or vehicles which provide in local and international market, such as commercial, passengers, trucks and military. On the other hand, the major problems of Tata Motor is about the management inside their organization.
2. Secondary Problems
According to the news, that Tata Motor faced the serious issue that Tata Nano has burned and flamed on the road (Mishra, 2010). In this reason, that could directly lead to the company income and sale decreased and also affect to the company fame. Moreover, as this influence, Tata might create the public stigma about that the company provide a poor man’s car, although, Tata would like to introduce their products as an affordable, all-weather, family car (IOL Motoring, 2012).
Tata only owns a traditional design of vehicles. Currently, Tata Motors tries to retrieve the first position of car supplier in the domestic market, and they are also looked for the international market by applying the new programme 2020 which consist of new technical vehicles. However, there could own a high risk for Tata reaches a goal because of the global competition.
3. Analysis
SWOT Analysis
Strength
Weakness
· The biggest automobile industry in India. In the world, it is 17th of motor vehicle manufacturing, 4th of truck manufacturing, and 2nd of bus manufacturing.
· The first company introduces the budget car - “Tata Nano” and with low fuel consumption.
· Huge number of employees, and multiple line of products.
· Strong marketing, expand to other countries. Moreover, the productions and assembly plants extent to South Africa, Jamshedpur, Thailand, Argentina and United Kingdom.
· Corporate Social Responsibility – Tata Motors
· Strong team management with experience of CEO, CFO and COO
· Lack design of vehicles – conventional fuel of vehicles.
· The raw materials are uncontrollable.
· Tata Motor does not own the luxury car segmentation in the local market, even though, they purchase the Jaguar and Land Rover.
· Weak market skills
· Invest on Tata Motor share which with a low returns.
Opportunity
Threat
· India government policy support.
Market analysis and potential marketsize for taco autocomponents aftermarket ...Supa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
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Tata group Vision and mission and its porter's five forcesAKASH GHANATE
I have included the overview and Vision and mission, Porter's five forces analysis on TATA group FY 2021, Which comes under Strategic management, to understand and help the students.
This article discuss on Tata Motors overall strategic management. The article further discuss on the models and tools related to strategic management such as the PESTLE analysis, SWOT analysis, VRIO Framework analysis, and strategies that can be used to further achieve competitive advantage for example corporate level strategies such as grand strategies, secondary level strategies and integration strategies.
tata project about customer satisfaction . consumer satisfaction towards service provided by bellad motors koppal district karnataka india. tata motors history. 4 whellers discription
The past, presnet and future of Automobile Industry in India.
EVOLUTION OF AUTOMOBILE SECTOR IN INDIA
MARKET OVERVIEW
KEY PLAYERS
LATEST TRENDS
GROWTH DRIVERS
POLICIES AND INITIATIVES
INVESTMENT SCENARIO
OPPORTUNITIES
INDUSTRY ORGANISATIONS
SWOT ANALYSIS
PESTEL ANALYSIS
PORTER’S ANALYSIS
In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
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Maximized driving performance and quick charging time through high-density battery pack and fast charging technology and applicable to various vehicle types!
Discover more about Hyundai Motor Group’s EV platform ‘E-GMP’!
Ever been troubled by the blinking sign and didn’t know what to do?
Here’s a handy guide to dashboard symbols so that you’ll never be confused again!
Save them for later and save the trouble!
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Learn about Common Rail Direct Injection (CRDi) - the revolutionary technology that has made diesel engines more efficient. Explore its workings, advantages like enhanced fuel efficiency and increased power output, along with drawbacks such as complexity and higher initial cost. Compare CRDi with traditional diesel engines and discover why it's the preferred choice for modern engines.
5 Warning Signs Your BMW's Intelligent Battery Sensor Needs AttentionBertini's German Motors
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Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
What Does the PARKTRONIC Inoperative, See Owner's Manual Message Mean for You...Autohaus Service and Sales
Learn what "PARKTRONIC Inoperative, See Owner's Manual" means for your Mercedes-Benz. This message indicates a malfunction in the parking assistance system, potentially due to sensor issues or electrical faults. Prompt attention is crucial to ensure safety and functionality. Follow steps outlined for diagnosis and repair in the owner's manual.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
Over the 10 years, we have gained a strong foothold in the market due to our range's high quality, competitive prices, and time-lined delivery schedules.
Symptoms like intermittent starting and key recognition errors signal potential problems with your Mercedes’ EIS. Use diagnostic steps like error code checks and spare key tests. Professional diagnosis and solutions like EIS replacement ensure safe driving. Consult a qualified technician for accurate diagnosis and repair.
Comprehensive program for Agricultural Finance, the Automotive Sector, and Empowerment . We will define the full scope and provide a detailed two-week plan for identifying strategic partners in each area within Limpopo, including target areas.:
1. Agricultural : Supporting Primary and Secondary Agriculture
• Scope: Provide support solutions to enhance agricultural productivity and sustainability.
• Target Areas: Polokwane, Tzaneen, Thohoyandou, Makhado, and Giyani.
2. Automotive Sector: Partnerships with Mechanics and Panel Beater Shops
• Scope: Develop collaborations with automotive service providers to improve service quality and business operations.
• Target Areas: Polokwane, Lephalale, Mokopane, Phalaborwa, and Bela-Bela.
3. Empowerment : Focusing on Women Empowerment
• Scope: Provide business support support and training to women-owned businesses, promoting economic inclusion.
• Target Areas: Polokwane, Thohoyandou, Musina, Burgersfort, and Louis Trichardt.
We will also prioritize Industrial Economic Zone areas and their priorities.
Sign up on https://profilesmes.online/welcome/
To be eligible:
1. You must have a registered business and operate in Limpopo
2. Generate revenue
3. Sectors : Agriculture ( primary and secondary) and Automative
Women and Youth are encouraged to apply even if you don't fall in those sectors.
2. GENERAL FACTS
Company Name : Tata Motors Limited (formerly, TELCO)
Parent Organisation : Tata Group
Industry : Automotive
Headquarters : Mumbai, Maharashtra, India
Year of Foundation : 1945
Founder : J.R.D. Tata
Date of IPO : 3rd Jan 2000, NYSE since 2004
IPO Price : Rs. 38.64
Number of Employees : 67,485 (2014-15)
Chairman : Cyrus Pallonji Mistry
Division : Tata Motor Cars
Subsidiaries : Jaguar Land Rover, Tata Daewoo, Tata
Hispano
2
4. TATA MOTORS AT A
GLANCE
Tata Motors Limited is India’s largest automobile company, with
consolidated revenues of INR 2,63,695 crores (USD 42.19 billion) in
2014-15.
The company’s manufacturing base in India is spread across
Jamshedpur(Jharkhand), Pune(Maharashtra), Lucknow(U.P.),
Pantnagar(Uttarakhand), Sanand(Gujarat) and Dharwad(Karnataka).
In 2005, it set up an industrial joint venture with Fiat Group
Automobiles at Rajangaon(Maharashtra) to produce both Fiat and
Tata cars and Fiat Powertrains.
The company’s dealership, sales, services and spare parts network
comprises over 6,000 touch points, across the world.
With over 4,500 engineers, scientists & technicians making
pathbreaking innovations at the company’s Engineering Research
Centre, established in 1966, have enabled pioneering technologies
and products.
4
5. PEST ANALYSIS
PEST Analysis is a simple and widely used tool that helps you
analyze the Political, Economic, Socio-Cultural, and
Technological changes in your business environment.
It is useful for four main reasons :
1. It helps you to spot business or personal opportunities, and it
gives you advanced warning of significant threats.
2. It reveals the direction of change within your business environment.
This helps you shape what you're doing, so that you work with
change, rather than against it.
3. It helps you avoid starting projects that are likely to fail, for reasons
beyond your control.
4. It can help you break free of unconscious assumptions when you
enter a new country, region, or market; because it helps you
develop an objective view of this new environment.
5
6. POLITICAL FACTORS
Since Tata Motors operates in multiple countries
across Europe, Africa, Asia, the Middle East, and
Australia, it needs to pay close attention on
following political factors in different regions :
◦ Political Climate or Stability
◦ Laws governing commerce, trade, growth, and
investment
◦ Labour Laws
◦ Tax policy
◦ Environmental Rules & Regulations
◦ Pricing Regulations
◦ Local Markets and Economies
6
7. ECONOMIC FACTORS
Operating in numerous countries across the world, Tata Motors
functions with a global economic perspective while focusing on each
individual market. Because Tata is in a rapid growth period, expanding
or forming a joint venture in over five countries world-wide since 2004,
a global approach enables Tata Motors to adapt and learn from the
many different regions within the whole automotive industry. Major
economic factors are :
Government taxes on manufacturers.
Inflation Rate
Population figures
Buying capacity of people
Prices of external resources (Ex: price of Steel will increase the price
of vehicle)
Level of economic activities
Interest Rates
7
8. SOCIAL FACTORS
There are various socio-cultural factors which affect a company
belonging to automotive industry like TATA MOTORS in the market
down to consumers. The factors are :
Different segments of Population
Cultural Differences
Social Responsibility
Influence of Consumer Movement
People concerns over the price, mileage, brand of the car, design
and style, after sales service when purchasing a vehicle.
Also, depends on what other people think about their vehicle
Satisfaction of different age groups
Space and Safety
Focus on Corporate Customers
8
9. TECHNOLOGICAL
FACTORS
Technological factors and innovations, Research &
development plays a most important role as they improve
standards of driving.
Fuel consumption is one of a major problem at the moment,
hybrid engines has developed to reduce fuel consumption.
One of a major requirement of the customer is safety. Seat
belts, air bags which protect passengers at a collision, ABS
brakes to stop the vehicle in short distance even in icy
surfaces.
By investing for Research and development and innovating
new technologies can gain patented and boost sales.
Technological development is support the driver to control the
vehicle more comfortable and easier. Ex: Auto gear, auto
parking, Navigation system.
9
11. Barriers to Entry
Economies of scale: Companies like Maruti, TATA Motors etc are present in
market from many years and had achieved the optimum level of production
through which these companies are enjoying the economies of scale. But for
a new player it will not be easy to get these benefits due to high price
competition from exiting players.
Demand side benefit of scale: Company like Bajaj, TATA etc have the large
number of customer base and had build the trust in the product. So new
players will find it difficult to a make place among the customer.
Customer switching cost: A customer after buying a vehicle once usually
do not replace it before two or three years so the switching cost in this
industry is high. It will be a barrier for new player.
Capital requirements: Capitals required to start an automobile company is
very high. High land, machinery and human resource requirement also
impose a big problem.
Distribution channels: In any industry to capture the huge market you
should have a big distribution network not only for sales of vehicles but also
for the services. Like Maruti due to the oldest company in India have the
advantage over the competitors. Even existing players are not able to
overcome this who are trying from so many years so a very big barrier for
new entrance.
11
12. Threat of Substitutes
For automotive industry, there are only two main substitutes
available i.e. Railways and Airlines.
But both of these will not be substitutes for every customer
and in every situation. Like for a short journey airlines will not
be substitutes. And journey to a place where railway can't
reach in this position railway will not be substitute. But these
can be threat in near future as airlines industry trying their
hard best to cheap their fair and start as much as local
airlines.
However, within the automobile industry lot of completion and
substitutes are available like for two wheels any car can be
substitute after the launch of Nano the price factor also
removed and owned car or car on rent are the substitute for
each other. This is great advantage to TATA as now two
wheeler customer can also go for car which mean new
segment of customer.
12
13. Bargaining Power of
Suppliers
To manufacture a vehicle number of inputs is used like steel,
seat covers, technology, and tyre etc. Input which add value
to the vehicle supplier of those inputs are always have high
bargaining power like tyres of MRF will add value to the
final product so company using the MRF tyre can't change
the supplier easily due to high switch cost.
Steel, which is the most important raw material of the industry
and in India, the demand of steel is higher than supply. So,
most of the steel is imported from abroad, hence in this case
also the bargaining power of suppliers is high.
However, inputs like Seat cover, plastics etc can be easily
switched with nil cost of switching. So in this case, bargaining
power of supplier is low.
13
14. Bargaining Power of Buyers
The bargaining power of buyers is generally low ,because the big
companies dominate the market with their quality and reputation of
so many years.
However, when a automobile company goes for backward
integration in that case buyer have the high bargaining power. Like
Tata which have its own steel plants so can face the problem of
shortage of raw material.
14
15. Industry Rivalry
Strong
The market is dominated by a few number of large scale companies
like Maruti Suzuki, Hyundai, Tata Motors comprising about 60%
market share.
Rivalry is somewhat reduced due to a degree of differentiation,
luxury and budget.
Since, industry competitiveness is high, Tata Motors will have to
differentiate its products and have clear position in market.
15
16. SWOT ANALYSIS
A SWOT analysis (alternatively SWOT matrix) is a structured
planning method used to evaluate the Strengths, Weaknesses,
Opportunities and Threats involved in a project or in a business
venture.
16
18. RATIO ANALYSIS
Ratio analysis is quantitative analysis of information contained in a
company's financial statements.
Ratio analysis is used to evaluate various aspects of a company’s
operating and financial performance such as its efficiency,
liquidity, profitability and solvency.
Ratios are also compared across different companies in the same
sector to see how they stack up, and to get an idea of comparative
valuations.
In our analysis, we will evaluate five aspects of the company and its
competitors :
1. Operating Performance(EBT margin, Net Profit margin, Return on
Assets, Return on Equity)
2. Activity Levels(Total Asset turnover)
3. Liquidity Position (Current Ratio)
4. Leverage (Debt to Equity)
5. Stock Valuation Multiples ( Price to Earnings Ratio, Price to Sales
Ratio)
18
19. EBT Margin
Tata Motors Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
4.66 % 2.46 % 0.39 % -2.99 % -10.95 %
• Competitors Performance in FY-2015
Tata Motors Ford GM Mahindra
-10.95 % 3.69 % 4.79 % 7.86 %
• EBT margin shows company’s earnings before tax as a percentage of
net sales (revenues).
• Tata Motors is performing poorly in current financial year as compared to
previous years. Negative EBIT margin indicates that the company isn’t
selling enough to cover its fixed costs. It’s only tolerable in a early stage
growth company or a Startup.
• As compared to its competitors, it is at the bottom. Mahindra leading in
the market.
19
20. Net Profit Margin
Tata Motors Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
3.84 % 2.28 % 0.67 % 0.97 % -13.05 %
• Competitors Performance in FY-2015
Tata Motors Ford GM Mahindra
-13.05 % 2.97 % 3.00 % 7.74 %
• The net profit margin takes all costs associated with the firm’s
continuing operations into account, and so tells us how much it is able
to keep as profit for each dollar of sales it makes. Usually, higher is
better.
• Tata Motors net profit margin has decreased drastically over the years.
It has gone negative in FY-2015,which indicates cost of production
exceeds net sales.
• However, in the market Mahindra is doing outstanding as compared to
everyone.
20
21. Return on Assets(ROA)
Tata Motors Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
5.23 % 4.05 % 0.90 % 0.99 % -13.57 %
• Competitors Performance in FY-2015
Tata Motors Ford GM Mahindra
-13.57 % 1.73 % 2.49 % 5.67 %
• The return on assets shows the percentage of how profitable a
company's assets are in generating revenue. This ratio tells us how
much profit a company is able to generate for each dollar of assets
invested.
• Tata Motors’ ROA is decreasing year by year and has fallen drastically
in recent financial year. Negative ROA shows that company is
investing a high amount of capital into its production while
simultaneously receiving little income.
• Mahindra & Mahindra leading the market strongly, with a much better
position.
21
22. Return on Equity(ROE)
Tata Motors’ Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
9.06 % 6.33 % 1.57 % 1.74 % -31.93 %
• Competitors’ Performance in FY-2015
Tata Motors Ford GM Mahindra
-31.93 % 13.92 % 12.29 % 21.57 %
• Return on equity measures the rate of return for ownership interest of
common stock owners. It measures the efficiency of a firm at
generating profits from each unit of shareholder equity.
• High ROEs can be caused by the firm taking on excessive leverage,
which can prove disastrous for the firm’s shareholders in the long run.
Hence, high ROE is not always better.
• Tata Motors recent financial year ROE shows that its shareholders are
loosing, instead to gaining value. Investors may avoid placing their
money in , but they may also overlook, as the company is well-
positioned for long-term growth.
• M&M high ROE might be due to excessive leverage.
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23. Total Assets Turnover
Tata Motors’ Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
1.35 1.77 1.34 1.01 1.039
• Competitors’ Performance in FY-2015
Tata Motors Ford GM Mahindra
1.039 0.66 0.84 0.9
• The asset turnover ratio tells us how many dollars of sales a
company is able to generate for each dollar of assets.
• A high asset turnover is an indicator of good performance provided
the company’s assets are not in a state of advanced depreciation.
• Tata Motors has a very good asset turnover ratio over its
competitors.
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24. Current Ratio
Tata Motors’ Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
0.54 0.45 0.40 0.39 0.55
• Competitors’ Performance in FY-2015
Tata Motors Ford GM Mahindra
0.55 3.03 1.22 1.44
• The current ratio is a financial ratio that measures whether or not
a firm has enough resources to pay its debts over the next 12
months. It compares a firm's current assets to its current
liabilities.
• A current ratio of 2 or above is usually considered safe.
• Tata Motors is in a poor condition to pay back its debts, while
Ford is in a very safe situation as compared to its competitors.
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25. Debt to Equity Ratio
Tata Motors’ Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
0.73 0.56 0.74 0.75 1.35
• Competitors’ Performance in FY-2015
Tata Motors Ford GM Mahindra
1.35 4.18 1.11 1.09
• The debt-to-equity ratio (D/E) is a financial ratio indicating the relative
proportion of shareholders' equity and debt used to finance a
company's assets.
• The most widely used measure of a company’s leverage, debt to equity
ratios greater than 1 indicate the company may be overleveraged.
• Tata Motors having a D/E ratio greater than 1, indicates the company is
stretching itself financially. However, Ford as compared to its
competitors is most overleveraged.
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26. Price to Earnings Ratio(P/E)
Tata Motors Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
27.62 339.17 1823.13 2739.68 -112.21
• Competitors Performance in FY-2015
Tata Motors Ford GM Mahindra
-112.21 14.88 11.12 22.01
• P/E tells us how many years a company will need to earn back what
investors are currently paying for the stock.
• It is generally high for companies considered to have huge growth
potential, and low for mature (‘unexciting’) companies.
• Tata Motors, being a very old company has reached a saturation stage in
FY-2104 and not able to make earnings, indicating a very low growth
potential.
• Mahindra & Mahindra on the other hand, has been able to evolve
continuously with the market and shows a huge potential to grow in FY-
2015.
• However, Tata Motors has done immensely great in previous years, due
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27. Price to Sales Ratio(P/S)
Tata Motors’ Performance
FY - 2011 FY - 2012 FY - 2013 FY - 2014 FY - 2015
1.06 7.74 12.34 26.74 14.64
• Competitors’ Performance in FY-2015
Tata Motors Ford GM Mahindra
14.64 0.387 0.329 0.176
• The price-to-sales (per share) ratio is more stable than the price-to-
earnings ratio.
• is
• It is preferred for the relative valuation of companies which are still
growing and do not have positive earnings.
• As Tata Motors, has negative earnings in the FY-2015, it has a very high
price to sales ratio as compared to its competitors ,which have positive
earnings.
• However, the P/S ratio has decreased from FY-2014 to FY-2015.
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Thank You
- Anmol Agrawal
ERI Student
Birla Institute of Technology, Mesra, Ranchi,
India