Tata Motors Ltd – Stock Analysis

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Tata motors Stock Analysis | How is Tata Motor's future outlook?

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.

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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