auto
Tata Motors Passenger Vehicles
TATAMOTORS · Nifty 50
₹360.95
Price 2026-06-17
At a Glance
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
11/100
LIMITED
Quick Take
Tata Motors Passenger Vehicles scores 60/100 on fundamentals (adequate). Tata Motors Passenger Vehicles: BROAD EXPANSION regime.
Fundamental Score: 60/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 73.5% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 73.52% is strong efficiency-driven and stable. Net margin of 23.5% × asset turnover of 0.92x × leverage of 3.4x.
What This Means
Net margin of 23.5% means the company keeps ₹23.5 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.92x means the company efficiently uses its assets to generate revenue. Leverage of 3.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
35.6%
Operating
0.9%
Net
23.5%
Gross margin 35.6% → operating margin 0.9% → net margin 23.5%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
STRETCHEDInterest covered only 1.0x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 3.4x is moderate.
Free Cash Flow
MODERATEFCF margin negative at -6.6% — spending more than earning. Check capex cycle.
Peer Comparison
Tata Motors Passenger Vehicles is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹379 (+5%)
Trend reversal confirmation
Breaks below ₹343 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.2x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Profits are from core operations, not one-offs. High quality.
Growth available at reasonable price. Favourable risk-reward.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes