No.

Index
1 Input Data
2 SWOT
3 IndustryAnalysis
4 Liquidity Ratio
5 Asset Management Ratio
6 Debt Management Ratio
7 Profitability Ratio
8 Market Value Ratio
Input Data 10000000 Rs. in Crore
Company Name Tata Motors
Industry Automobile Industry
Year 2010 2009
Current asset 7080.88 4577.26
Current Liability 14609.16 8597.97
Sales 38364.10 28568.21
Inventory 2935.59 2229.81
Acc. Recivables 2391.92 1205.52
Net fixed Asset 11203.89 7645.27
Total Asset 33100.02 26425.64
Net Income 31414.77 23877.29
Total Debt 35192.36 34,973.85
EBIT 4853.83 1752.70
Interest 1103.84 673.68
EBITDA 6031.73 2678.41
Lease Payment 0.02 0.18
Princ. Payment 0.00 0.00
Market Price per share 813.00 281.50
Common Equity 46.37 41.31
Basic earning per share 42.37 22.7
Dividend per share 15 6
Book value per share 26.2 23.8
Cash flow per share 1.859461286313 -28.698463733
 Industry Analysis

Automobile Industry - In India

The automobile industry in India happens to be ninth largest in the world.Following Japan, South korea and Thailand, India em
automobiles.Several Indian automobile manufacturers have spread their operation globally as well asking for more investeme
industry, which is currently growing at the pace of 18% per annum, has become hot destination for global auto players like Vo
industry is going through a phase of rapid change and high growth. With new project coming up on regular basis, the industry
are expanding their plants and focussing on mass customization, mass prodcution...etc.

Investment Scenario
It is expected that by the end of 2011 Indian automobile sector will be investing huge amount about Rs.30000 crores. For exam
investement of Rs. 2000 crores. Not only the Indian companies but also foreign players like Huyndai are coming up with the in

Growth trends
At present the Industry is enjoying a growth rate of 14-17% per annum, with domestic sales growth rate at 12.8%. The growth
rate indicates that by 2012 India will overtake Germany and Japan in sales volumes.

Key players
 Ashok leyland
Royal enfield
Audi AG
Baja Auto
Skoda Auto India
Kinetic motor co. ltd.
Bentley motors ltd.
Chevrolet
Swaraj mazda ltd.
Mahindra & Mahindra ltd.
Eicher motors
Tata motors
Mercedez benz
Mitsubishi motors
Toyota kirloskar motors
HMT tractors
Yamaha motors
Honda motors co. ltd.
Hyundai motors
BMW
Sonalika tractors
Lamborghini suzuki motors
LML india
Tafe tractors
Maruti suzuki india ltd.
Escort ltd.
Fiat india pvt. ltd.
Force motor
Ford motors
TVS motor co.
Reva electric co.
Hindustan motors
 Ashok leyland
Royal enfield
Audi AG
Baja Auto
Skoda Auto India
Kinetic motor co. ltd.
Bentley motors ltd.
Chevrolet
Swaraj mazda ltd.
Mahindra & Mahindra ltd.
Eicher motors
Tata motors
Mercedez benz
Mitsubishi motors
Toyota kirloskar motors
HMT tractors
Yamaha motors
Honda motors co. ltd.
Hyundai motors
BMW
Sonalika tractors
Lamborghini suzuki motors
LML india
Tafe tractors
Maruti suzuki india ltd.
Escort ltd.
Fiat india pvt. ltd.
Force motor
Ford motors
TVS motor co.
Reva electric co.
Hindustan motors
 SWOT

Brief about Tata Motors

Tata motors ltd. Is India's largest automobile company, It is the leader in commercial vehicles in each segment, and among the
vehicles with winning products in compacts, mid size cars and utility vehicle segment. The company is the world's fourth large
the world's second largest bus manufacturer. Tata motors, the first company from India's engineering sector to list in the New
emerged as an international automobile company. Through subsidiaries and associate companies, Tata motors has operation
Thailand and Spain. Among them Jaguar Land rover, a business comprising the iconoic british brand that accuired in 2008.

Strengths
>TATA motors is market leader in Automobile Industry with high market
share.
>TATA Motors Company have huge employee base.
>TATA motors employee productivity percentage is higher.
>TATA motors produce low price car with low fuel consumption.
>TATA motors is the reputable brand in Indian Industry.
>Tata Motors Limited is India’s largest automobile company
>The company’s dealership, sales, services and spare parts network
comprises over 3500 touch points.
>Tata Motors has been aggressively acquiring foreign brands to increase its
global presence.
>The research and development department of TATA motors is very
strong.
>TATA motors posses High corporate responsibility.

Opportunity
>TATA motors can take the advantage of their low cost car by entering into
third world countries where people have low purchasing power.
>TATA motors should focus in developing luxury cards.
>TATA motors can introduce more safety features in vehicles to gain more
customer satisfaction.
>Joint ventures in other countries allow TATA motors to easily enter into
new market.
 SWOT

Brief about Tata Motors

eader in commercial vehicles in each segment, and among the top three in passeneger
lity vehicle segment. The company is the world's fourth largest truck manufacturer, and
rst company from India's engineering sector to list in the New york stock exchange, has
idiaries and associate companies, Tata motors has operation in the UK, South korea,
omprising the iconoic british brand that accuired in 2008.

Weakness
>Return on Investment on TATA motors shares in low.
>TATA motors is not able to meet safety standards in their vehicles.
>The domestic sales of the company are not up to the mark.
>Tata has not got a foothold in the luxury car segment in its domestic
market.

Threats
>TATA motors have low cost advantage over its competitors, once the
competitors find out the low cost production methodology then there will no
competitive advantage.
>Other companies are starting to compete for some of this market share. In
fact, the Pakistan’s Transmission Motor Company has built a basic four-
wheeler for only $2,100. This car is considerably cheap and the Pakistan
Transmission Motor company started exporting them to Sudan, Qatar, and
Chile. This is going to be the beginning of new emerging car manufactures
that will be producing low priced cars.
>The major challenge for TATA motors is the rising prices of steel, Aluminum
and plastic which is heavily used in vehicle manufacturing.
>The low safety standards can impact the sales.
 Liquidity Ratio
2010 2009 Change
Current Ratio= Current Asset/Current liability 0.484688 0.532365 -0.047678
Analysis
Quick ratio or Acid test= Current Asset-Inventory/Current liability 0.283746 0.273024 0.010722
Analysis
 Asset Management Ratio
2010 2009 Change
Inventory turn over ratio= Sales/Inventory 13.06862 12.81195 0.256668
Analysis
Days Sales out standing(DSO)= Acc. Reci./Avg. Sales per year 22.75697 15.40225 7.35472
Analysis
Fixed Asset turnover= Sales/Net fixed asset 3.424177 3.736717 -0.31254
Analysis
Total asset turnover= Sales/Total asset 1.159036 1.081079 0.077956
Analysis
 Debt management ratio

Return on equity(ROE)= Net income/common equity

Analysis
Debt ratio= Total debt/Total asset
Analysis
Time interest earned ratio= EBIT/Interest
Analysis
EBIDA or Debt coverage ratio= EBITDA+Lease payment/Interest+Princ. payment+Lease payment
Analysis
 2010 2009 Change
677.4272 578.0678 99.359438124

1.063213 1.323482 -0.260269013

4.397222 2.60168 1.7955421005

5.464235 3.974995 1.4892397889


Profit margin on sales=
Analysis
Basic earning power(BEP)=
Analysis
Return on Total asset(ROA)=
Analysis
Return on equity(ROE)=
Analysis
Profitability Ratio
2010 2009 Change
Net income/Sales 0.818859 0.835799 -0.016941
EBIT/Total asset 0.146641 0.066326 0.080316
Net income/Total asset 0.949086 0.903565 0.045521
Net income/common equity 677.4272 578.0678 99.35944

Price/Earning(P/E) ratio=
Analysis
Price/Cash flow(P/C) ratio=
Analysis
Market/Book value(M/B) ratio=
Analysis
Market Value ratio
2010 2009
Market price per share/Earning per share 19.1881 12.40088
Market price per share/cash flow per share 437.2234 -9.808887
Market price per share/Book value per share 31.03053 11.82773
Change
6.787224

447.0323

19.2028