TMPV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | TMPV | Market Cap | 1,33,820 Cr. | Current Price | 363 ₹ | High / Low | 449 ₹ |
| Stock P/E | 29.8 | Book Value | 67.8 ₹ | Dividend Yield | 1.65 % | ROCE | 16.4 % |
| ROE | 15.4 % | Face Value | 2.00 ₹ | DMA 50 | 348 ₹ | DMA 200 | 371 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 1.71 % | PAT Qtr | 383 Cr. | PAT Prev Qtr | 389 Cr. |
| RSI | 59.9 | MACD | 4.63 | Volume | 73,45,570 | Avg Vol 1Wk | 1,11,63,141 |
| Low price | 294 ₹ | High price | 449 ₹ | PEG Ratio | 2.06 | Debt to equity | 0.12 |
| 52w Index | 44.6 % | Qtr Profit Var | 75.1 % | EPS | 238 ₹ | Industry PE | 27.7 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹383 Cr. vs ₹389 Cr. previous quarter, showing stability with slight decline but strong YoY growth (75.1%).
- Margins: ROE at 15.4% and ROCE at 16.4% reflect healthy efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.12 indicates low leverage, balance sheet remains strong.
- Cash Flow: Stable due to consistent earnings and diversified operations.
💹 Valuation Indicators
- P/E Ratio: 29.8 vs Industry PE of 27.7 — trades at a slight premium, but within reasonable range.
- P/B Ratio: Price ₹363 vs Book Value ₹67.8 → ~5.35x, moderately expensive relative to assets.
- PEG Ratio: 2.06 indicates valuations are stretched relative to growth.
- Intrinsic Value: Current price appears fairly valued, supported by earnings growth.
🚗 Business Model & Advantage
Tata Motors Passenger Vehicles (TMPV) operates in the automotive sector, focusing on passenger cars and electric vehicles. Its competitive advantage lies in strong brand presence, innovation in EVs, and backing from Tata Group. Diversification across ICE and EV segments provides resilience and growth potential.
📈 Technicals & Entry Zone
- RSI at 59.9 indicates neutral to slightly overbought momentum.
- MACD positive (4.63) suggests short-term bullishness.
- Entry Zone: Attractive accumulation around ₹340–₹355 range.
- Long-term Holding: Strong fundamentals and EV growth prospects make it suitable for long-term investors.
✅ Positive
- Healthy ROE (15.4%) and ROCE (16.4%).
- Quarterly PAT stability with strong YoY growth (75.1%).
- DII holdings increased (+1.71%).
⚠️ Limitation
- P/E ratio (29.8) slightly above industry average.
- P/B ratio (~5.35x) signals moderate overvaluation.
- PEG ratio (2.06) indicates stretched valuations.
📰 Company Negative News
- FII holdings declined (-0.59%).
- Quarterly PAT slightly lower sequentially (₹383 Cr. vs ₹389 Cr.).
🌟 Company Positive News
- DII holdings increased significantly (+1.71%).
- Strong growth in EV segment and passenger vehicles.
- Stable earnings despite industry challenges.
🏭 Industry
Automobile industry PE at 27.7 reflects moderate valuations. Demand is driven by rising consumer incomes, EV adoption, and exports. Competition remains intense, but Tata Motors’ strong brand and EV innovation provide resilience.
🔎 Conclusion
Tata Motors Passenger Vehicles demonstrates solid profitability, low debt, and strong industry positioning. While valuations are slightly stretched, fundamentals remain robust. Long-term investors may consider accumulating in the ₹340–₹355 range, aligning with EV growth and passenger vehicle demand while being mindful of valuation risks.
For broader context, you could explore a peer comparison or an industry outlook to complement this analysis.