Tata Motors has seen a reduction in key financial metrics like EBDITA, EBIT, PBT and PAT from 2012-2015. This has occurred during a period of weak operating environment for the standalone business. As an investor, it is questionable whether Tata Motors remains a good company to invest in. This financial modeling aims to provide a target share price by considering factors like CAPEX, WACC and working capital. It examines the company's performance over the last 5 years and management's actions in response to the weak environment to help determine if Tata Motors presents value for potential investment.

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Chapter No. 1
Abstract
This paper is an empirical study of the company performance for last five year and as a leman
investor whether selects this company to invest or not (decisions about investments). This is
a mathematical model designed to represent (a simplified version of) the performance of a
financial asset or portfolio of a business, project, or any other investment. This represents
translating a set of hypotheses about the behavior of performance, financial strength,
management decision in terms of M & A and amalgamation, market into numerical predictions.
To illustrate, the paper ends by examining some of the most serious evidence against market
rationality: excess volatility, the risk premium puzzle, Capex and Risk management is also
examined.
Problem Statement
Considering the continued weak operating environment in the standalone business and in view of
the losses for the year, no dividend is permitted to be paid to the Members. The loss for the
Fiscal Year is Rs.4,738.95 crores. Since 2012 to 2015, continues deduction and negative
performance in EBDITA, PBT, PAT etc it is questionable that what goes wrong. Whether as a
leman inventor Tata motors is remain good company to invest? Why reduction in EBDITA,
EBIT, PBT, PAT? Still MFs and PMC invest in Tata motors why? Company Management action
towards weak operating environment? This modeling provides target price of share? Which
come after considering CAPEX, WACC and Working Capital? Help to understand value for Tata
motor.
Introduction
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Tata group profile
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India,
comprising over 100 independent operating companies. The group operates in more than 100
countries across six continents, with a mission 'To improve the quality of life of the communities
we serve globally, through long-term stakeholder value creation based on Leadership with Trust'.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six
percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support
education, health, livelihood generation and art and culture. In 2014-15, the revenue of Tata
companies, taken together, was $108.78 billion. These companies collectively employ over
600,000 people.
Each Tata company or enterprise operates independently under the guidance and supervision of its
own board of directors and shareholders. There are 29 publicly-listed Tata enterprises with a
combined market capitalisation of about $134 billion (as on March 31, 2015). Tata companies
with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power,

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Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and
Indian Hotels
Many Tata companies have achieved global leadership in their businesses. For instance, Tata
Communications is #1 international wholesale voice provider and Tata Motors is among the top
ten commercial vehicle manufacturers in the world. Tata Steel is among the top fifteen best
steelmakers and TCS is the second largest IT services company in the world by market cap and
profit. Tata Global Beverages is the second-largest tea company in the world and Tata Chemicals
is the world’s second-largest manufacturer of soda ash. Employing a diverse workforce in their
operations, Tata companies have made significant local investments in different geographies.
In tandem with the increasing international footprint of Tata companies, the Tata brand is also
gaining international recognition. Tata companies bring to their customers worldwide a whole
host of reputed brands which touch their lives every day. Brand Finance, a UK-based
consultancy firm, has valued Tata’s multi-brand portfolio at over $23 billion in 2015.
With its pioneering and entrepreneurial spirit, the Tata group has spawned several industries of
national importance in India: steel, hydro-power, hospitality and airlines. The same spirit,
coupled with innovativeness, has been displayed by entities such as TCS, India’s first software
company, and Tata Motors, which made India’s first indigenously developed car, the Tata Indica
and the smart city car, the Tata Nano. Pursuit of excellence has similarly been manifested in
recent innovations like the SilentTrack technology developed by Tata Steel Europe and the next-
generation Terrain Response, including infrared laser scanning to predict terrain, and Wade Aid
to predict water depth, by Jaguar Land Rover.
The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for science and
technology, medical research, social studies and the performing arts. The trusts also provide aid
and assistance to non-government organisations working in the areas of education, health care
and livelihoods. Tata companies themselves undertake a wide range of social welfare activities,
especially at the locations of their operations, as also deploy sustainable business practices.
Going forward, Tata companies are building multinational businesses that seek to differentiate
themselves through customer-centricity, innovation, entrepreneurship, trustworthiness and
values-driven business operations, while balancing the interests of diverse stakeholders including
shareholders, employees and civil society.
Shareholding pattern
Shareholder No of shares Share Holding Percentage
Shapoorji Pallonji 108 18.39

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Shareholder No of shares Share Holding Percentage
Sterling Investment Corp
(Shapoorji Pallonji Group)
37120
Cyrus Investments
(Shapoorji Pallonji Group)
37120
Ratan Tata 3368
Sir Dorabji Tata Trust 113067
Sir Ratan Tata Trust 95211
Tata Investment Corp 326
Sarvajanik Seva Trust 396
RD Tata Trust 8838
Tata Social Welfare Trust 15075
Tata Education Trust 15075
JRD Tata Trust 16200
Tata Power 6673
Tata Tea 1755
Indian Hotels 4500
Tata Industries 2295
Tata Chemicals 10237
Kalimati Investment Co 12375

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Shareholder No of shares Share Holding Percentage
Tata International Ltd 1477
Tata Motors 12375
Piloo Tata 487
Jimmy Naval Tata 3262
Vera Farhad Choksey 157
Jimmy Tata 157
Simone Tata 2011
Noel Tata 2055
HH Maharawal Virendra Singh Chauhan
Raja of Chhota Udepur
1
MK Tata Trust 2421
Financial Position
Year 2014-15
(Rs crore)
2013-14
(Rs crore)
% change
Total revenue 665,185 624,757 6.5
Sales 653,381 617,212 5.9
Total assets 721,180 703,734 2.5
International revenues 448,918 419,860 6.9

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Tata Motors
Tata Motors Limited, a USD 42 billion organization, is a leading global automobile manufacturer with a
portfolio that covers a wide range of cars, sports vehicles, buses, trucks and defense vehicles. Our marque
can be found on and off-road in over 175 countries around the globe.
TATA MOTORS
Established
Employee
Strength
Company
Turnover
Vehicles Sold Sales & Service
Points
1945 60000 $ 42 Billion >900000 >6600
Tata Motors is part of the USD 100 billion Tata group founded by Jamsetji Tata in 1868. Sustainability
and the spirit of ‘giving back to society’ is a core philosophy and good corporate citizenship is strongly
embedded in our DNA. Tata Motors is India’s largest automobile company. We bring to the customer a
proven legacy of thought leadership with respect to customer-centricity and technology. We are driving
the transformation of the Indian commercial vehicle landscape by offering customers leading edge auto
technologies, packaged for power performances and lowest life-cycle costs. Our new passenger cars are
designed for superior comfort, connectivity and performance. What keeps us at the forefront of the market
is our focus on future-readiness and our pipeline of tech-enabled products. Our design and R&D centres
located in India, the UK, Italy and Korea strive to innovate new products that achieve performances that
will fire the imagination of GenNext customers. Across the globally dispersed organisation that we are
today, there is one thing that energises and drives all our people and our activities – and that is our
mission “to be passionate in anticipating and providing the best vehicles and experiences that excite our
customers globally''.
Product range of the company includes:
Passenger Cars:
Indica Vista, Indica V2, indica V2 Turbo, Indica V2 Xeta, Indica V2 Dicor., Aria, Zest and Bolt (upcoming)
Net forex earnings 40,690 32,129 26.6

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Indigo XL, Indigo, Indigo Marina Indigo CS.
Nano.
Utility Vehicles:
Safari Dicor
Sumo Grande
Sumo
Xenon XT
Trucks:
Medium & Heavy Comm. Vehicles, Tata Novus.
Intermediate Comm.Vehicles
Light Commercial Vehicles, TL 4×4, Small Commercial Vehicles.
Commercial Passenger Carriers:
Buses.
Winger.
Magic
Defence Vehicles
Subsidiaries of the company:
 Jaguar Land Rover.
 Tata Technologies Ltd. (TTL) and its subsidiaries.
 Telco Construction Equipment Co. Ltd. (Telcon).
 HV Axles Ltd. (HVAL).
 HV Transmissions Ltd. (HVTL).
 TAL Manufacturing Solutions Ltd. (TAL).
 Sheba Properties Ltd. (Sheba).
 Concorde Motors (India) Ltd. (Concorde).
 Tata Daewoo Commercial Vehicle Company Ltd (TDWCV).
 Hispano Carrocera S. A. (HC).
 Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL).

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 Tata Motors European Technical Centre plc.
 Tata Motors Finance Limited.
 Tata Motors Thailand.
 Tata Marcopolo Motors Ltd (TMML).
 Tata Motors (SA) Proprietary Ltd (TMSA).
 TML Distribution Company Ltd (TDCL
Summary Statement holding of specified securities
Cate-
gory
Category of
shareholder
Nos. of
share-
holders
No. of fully
paid up
equity
shares hel
Total nos.
shares held
Shareholding as a
% of total no. of
shares (calculated
as per SCRR, 1957)
A Promoter &
Promoter Group
21 953138697 953138697 33.01
Public 475607 1934064905 1934064905 66.99
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