Tata Motors Ltd.
ISIN: INE1TAE01010 • Market Cap: ₹1.76 Lakh Cr
The 5-Pillar Quality Audit for Tata Motors Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.1%), Return on Capital Employed (31.3%), and equity compounding (23.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.38 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (—) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 42.02 vs PEG of 1.98 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 42.6%, backed by 37.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 31.3%)
Tata Motors Ltd. generates exceptional return on capital employed of 31.3%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 23.8%)
Shareholder equity compounds at a healthy 23.8%, exceeding average Indian equity benchmarks.
Deep Institutional Sponsorship (37.1%)
Mutual funds, domestic DIIs, and foreign FIIs hold 37.1%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking TMCV against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 71/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare TMCV directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Tata Motors Ltd. (TMCV)Current | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
| Bharat Heavy Electricals Ltd. (BHEL) | 65/100 | ₹1.46 Lakh Cr | 59.91 | 7.6% | 0.30 | View |
Frequently Asked Questions: Tata Motors Ltd.
Q:What is the 5-Pillar Fundamental Score for Tata Motors Ltd. (TMCV)?
Tata Motors Ltd. has a RupeeTools Fundamental Score of 71/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (79/100), Financial Health (84/100), Growth (50/100), Valuation (57/100), and Ownership Quality (78/100).
Q:Is TMCV fundamentally strong for long-term investment?
Yes, TMCV exhibits solid fundamental strength with a 71/100 score, driven by a return on equity of 23.8% and a debt-to-equity ratio of 0.38.
Q:Does TMCV pass the Coffee Can Investing filter?
No. TMCV does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does TMCV compare against other Capital Goods peers?
Within India's Capital Goods sector, TMCV trades at a P/E of 42.02 and generates an ROCE of 31.3%. Compare its 5-Pillar score of 71/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.