TMPV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | TMPV | Market Cap | 1,25,774 Cr. | Current Price | 342 ₹ | High / Low | 449 ₹ |
| Stock P/E | 22.5 | Book Value | 66.7 ₹ | Dividend Yield | 1.76 % | ROCE | 20.3 % |
| ROE | 17.9 % | Face Value | 2.00 ₹ | DMA 50 | 345 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 1.71 % | PAT Qtr | 389 Cr. | PAT Prev Qtr | -237 Cr. |
| RSI | 48.9 | MACD | 4.85 | Volume | 1,31,08,761 | Avg Vol 1Wk | 1,04,22,072 |
| Low price | 294 ₹ | High price | 449 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.12 |
| 52w Index | 30.5 % | Qtr Profit Var | 582 % | EPS | 240 ₹ | Industry PE | 27.3 |
📊 TMPV (Tata Motors Passenger Vehicles) demonstrates strong fundamentals with ROE of 17.9% and ROCE of 20.3%, reflecting efficient capital utilization. EPS of ₹240 provides a solid earnings base, while quarterly PAT turnaround (₹-237 Cr → ₹389 Cr) highlights robust recovery momentum. Valuations are attractive with a P/E of 22.5 compared to industry average of 27.3, and PEG ratio of 0.29 indicates undervaluation relative to growth. Dividend yield of 1.76% adds income support. Debt-to-equity ratio of 0.12 remains low, ensuring financial stability. Technical indicators show neutral momentum with RSI at 48.9 and MACD at 4.85, while price trades near 50 DMA (₹345) but below 200 DMA (₹375), reflecting short-term stability but medium-term weakness.
💰 Ideal Entry Price Zone: ₹335 – ₹345 (near 50 DMA support and valuation comfort).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider partial profit booking near ₹440–₹450 resistance. Long-term holding is justified given strong profitability metrics, sectoral growth, and improving fundamentals.
✅ Positive
- Strong ROE (17.9%) and ROCE (20.3%) highlight operational efficiency.
- PEG ratio (0.29) indicates undervaluation relative to growth.
- Quarterly PAT turnaround (₹-237 Cr → ₹389 Cr).
- EPS of ₹240 supports strong earnings base.
- DII holdings increased (+1.71%), showing domestic investor confidence.
⚠️ Limitation
- FII holdings decreased (-0.59%), showing reduced foreign interest.
- Dividend yield of 1.76% is modest compared to peers.
- Stock trading below 200 DMA (₹375), indicating medium-term weakness.
📉 Company Negative News
- Reduced foreign institutional participation.
- Stock trading below long-term moving average (200 DMA).
📈 Company Positive News
- Strong quarterly profit recovery and earnings momentum.
- Domestic institutional investors increasing stake.
- Valuation comfort with P/E below industry average.
🏭 Industry
- Automobile sector trading at PE 27.3, offering moderate valuation levels.
- Industry supported by rising demand for passenger vehicles and EV adoption.
🔎 Conclusion
TMPV is a strong candidate for long-term investment, driven by robust ROE/ROCE, earnings recovery, and attractive PEG valuation. Entry near ₹335–₹345 offers favorable risk-reward. Hold for 3–5 years with profit booking near ₹440–₹450 resistance. Despite modest dividend yield and reduced FII interest, strong fundamentals and sectoral demand make TMPV attractive for portfolio inclusion.