⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TMPV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | TMPV | Market Cap | 1,19,493 Cr. | Current Price | 325 ₹ | High / Low | 449 ₹ |
| Stock P/E | 21.4 | Book Value | 66.7 ₹ | Dividend Yield | 1.85 % | ROCE | 20.3 % |
| ROE | 17.9 % | Face Value | 2.00 ₹ | DMA 50 | 357 ₹ | DMA 200 | 387 ₹ |
| Chg in FII Hold | 0.75 % | Chg in DII Hold | -1.95 % | PAT Qtr | 389 Cr. | PAT Prev Qtr | -237 Cr. |
| RSI | 36.6 | MACD | -13.4 | Volume | 82,87,390 | Avg Vol 1Wk | 1,18,72,505 |
| Low price | 307 ₹ | High price | 449 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.12 |
| 52w Index | 12.4 % | Qtr Profit Var | 582 % | EPS | 240 ₹ | Industry PE | 29.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT swung from a loss of ₹-237 Cr. to a profit of ₹389 Cr. (+582%), showing strong turnaround momentum.
- Margins: ROE at 17.9% and ROCE at 20.3% reflect solid profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.12 indicates low leverage, ensuring financial stability.
- Cash Flow: Supported by strong automotive demand, though cyclical risks remain.
💹 Valuation Indicators
- P/E Ratio: 21.4 vs Industry PE of 29.0 → undervalued compared to peers.
- P/B Ratio: Current Price ₹325 vs Book Value ₹66.7 → ~4.87x, reflecting premium valuation relative to book.
- PEG Ratio: 0.28 → indicates undervaluation relative to growth potential.
- Intrinsic Value: Estimated fair value near ₹340–360, suggesting current price is slightly undervalued.
🚗 Business Model & Competitive Advantage
- Operates in passenger vehicles and EVs under Tata Motors, with strong domestic and global presence.
- Competitive advantage lies in brand strength, diversified product portfolio, and EV adoption strategy.
- Beneficiary of rising demand for sustainable mobility and government EV incentives.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹310–340, aligning with intrinsic value.
- Long-Term Holding: Suitable for 5+ year horizon; strong fundamentals and EV growth make it a solid long-term bet.
✅ Positive
- Strong turnaround in quarterly profits (+582%).
- Solid ROE (17.9%) and ROCE (20.3%) highlight efficiency.
- FII holdings increased (+0.75%), reflecting foreign investor confidence.
⚠️ Limitation
- P/B ratio (~4.87x) reflects premium valuation relative to book value.
- DII holdings decreased (-1.95%), showing reduced domestic institutional support.
- Automotive sector remains cyclical and sensitive to demand fluctuations.
📉 Company Negative News
- Previous quarter losses (₹-237 Cr.) highlight earnings volatility.
- DII holdings decreased, showing weaker domestic institutional sentiment.
📈 Company Positive News
- Quarterly PAT turnaround to ₹389 Cr. shows strong recovery.
- FII holdings increased, reflecting foreign investor confidence.
- EV adoption strategy and government incentives support long-term growth.
🏭 Industry
- Automotive industry is cyclical but supported by EV adoption and rising consumer demand.
- Industry PE at 29.0 shows sector is moderately valued compared to TMPV’s lower P/E.
- Government push for EVs and sustainable mobility supports long-term growth.
🔎 Conclusion
TMPV demonstrates strong fundamentals with a sharp turnaround in profits, solid ROE/ROCE, and low debt. Valuations are attractive with a P/E below industry average and PEG ratio signaling undervaluation. Entry around ₹310–340 offers favorable risk-reward. Long-term investors can hold for 5+ years, benefiting from EV adoption and Tata Motors’ strong market presence, though cyclical risks and valuation premiums relative to book value should be monitored.