Tata Motors Stock Price Analysis and Quick Research Report. Is Tata Motors an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?

We can look into more details and dig a little deeper into the analysis of the stock of this sector. Tata Motors stock price today is Rs 712.05. Let’s look at how Tata Motors is performing and if it is the right time to buy the stock of Tata Motors with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Tata Motors has reported poor sales growth of -5.2986 % and in the latest quarter sales was Rs 19999 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 20.9598 times for Tata Motors . It is managing its inventory efficiently . 
   
• Tata Motors reported Profit loss of -31.0048 % over the year, where the latest year profit is Rs 5452 Cr compared to the previous year of Rs 7902 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Tata Motors in the latest quarter is Rs 2452 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Tata Motors has a average ROE of 17.196 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Tata Motors has a low Debt to Equity ratio of 0.2581.
   
• Tata Motors pays a dividend of 6 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.8426 %.
   
• The share of promoter in Tata Motors is low at 42.58 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Tata Motors is 48.0812732539688 compared to the 5 year average PE of 30.54702 .
   
• Share Price: - The current share price of Tata Motors is Rs 712.05. One can use valuation calculators of ticker to know if Tata Motors share price is undervalued or overvalued.