Tata Motors Passenger Vehicles Ltd.
ISIN: INE155A01022 • Market Cap: ₹1.19 Lakh Cr
The 5-Pillar Quality Audit for Tata Motors Passenger Vehicles Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (4.9%), Return on Capital Employed (2.4%), and equity compounding (73.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.62 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-7.5%) and 3Y PAT CAGR (36.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 1.50 vs PEG of 0.12 and Dividend Yield of 0.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 42.5%, backed by 34.4% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 73.5%)
Shareholder equity compounds at a healthy 73.5%, exceeding average Indian equity benchmarks.
High-Velocity Profit Compounding (3Y PAT CAGR: 36.1%)
Net earnings have compounded at 36.1% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 1.50)
Trading at a P/E multiple of 1.50, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (34.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 34.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 2.4%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: -7.5%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking TMPV 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)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare TMPV directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Tata Motors Passenger Vehicles Ltd. (TMPV)Current | 66/100 | ₹1.19 Lakh Cr | 1.50 | 2.4% | 0.62 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: Tata Motors Passenger Vehicles Ltd.
Q:What is the 5-Pillar Fundamental Score for Tata Motors Passenger Vehicles Ltd. (TMPV)?
Tata Motors Passenger Vehicles Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (53/100), Financial Health (64/100), Growth (60/100), Valuation (85/100), and Ownership Quality (78/100).
Q:Is TMPV fundamentally strong for long-term investment?
TMPV currently holds a moderate quality rating of 66/100. While it operates in the Automobile and Auto Components sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does TMPV pass the Coffee Can Investing filter?
No. TMPV does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does TMPV compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, TMPV trades at a P/E of 1.50 and generates an ROCE of 2.4%. Compare its 5-Pillar score of 66/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
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.