हिंदी – Tata motors stock review ( Valuations )

हिंदी – Tata motors stock review ( Valuations )


Hello investors, my name is Sagar and in this video, we’ll talk about Tata motors we will talk about their business model and their financials and at the end we will talk about valuations and their recent quarter Let’s start with the management. Tata motors is part of Tata Group and their chairman is MR. Chandrasekaran He was the managing director of Tata Consultancy Services and under him, the company became one of the biggest companies in India delivering great returns for their shareholders. He is also in the board of Directors of RBI I will divide their business model in three segments. Tata Daewoo , Tata Motors and Jaguar land Rover Let’s start with Tata Dawoo. They reported sales of 5 000 crores. That’s not much when you compare it to the total sales of 290 000 crores It’s the second largest manufacturer of trucks in South Korea. They focus on medium and heavy trucks Tata Motors limited is their domestic business. They operate in two segments. The first one is commercial vehicles They sell big cars such as trucks and buses. In 2017, they had market share of 44.4 % and in 2018, they reported an increase in their market share to 45.1 % and in their recent quarter, they increased it even more The second segment is passenger vehicles. Here their market share was only 5.1 %in 2017 but they increased it to 5.7 % in 2018 they reported great profits from their domestic business in their recent quarter They want to focus in their domestic business as they see huge potential to grow. As I mentioned, their market share in passenger vehicles is not a lot and that’s because they didn’t have any products in many categories and that’s why they plan to introduce more models to capture more market share Jaguar Land Rover sells heir cars internationally (US, China , Europe ) Their cars sell at a premium price. Land Rover focuses on bigger cars . There are three main issues in this segment. But before that, I need to tell that out of 290 000 crores of total sales 226 000 crores of sales were from JLR and that’s why we need to focus on this segment there are three main issues with JLR. The first one is Brexit JLR is UK’s largest manufacturer and they source many components from Europe as you know there is tension between UK and Europe and we don’t know what will happen with Brexit that can affect this company directly but they do have more manufacturing plants outside UK. So, if you notice they have a plant in Slovakia You can see in the image the number of manufacturing plants. I’ve seen the plant of Slovakia because I got my medical degree from Slovakia I’m sure you read when they announced that they are firing 4 500 people for cost cutting purposes and that’s because they will need to invest more money in electric vehicles Jaguar already has their I-pace which is doing very well and it has great reviews but they plan to invest more and launch more electric vehicles the third issues is diesel demand. JLR invested a lot in diesel vehicles and a big part of their fleet is diesel cars but the demand of diesel cars keeps decreasing Let’s take a look at their financials. I will start with their income statement. They reported sales of 2 75 000 crores in 2017 and increased it to 296 000 crores in 2018 So they have increased their sales but I like to focus on the profits. Car companies always have low margins as they have to pay a lot of workers and the cost of raw material is very high they reported profits of 8 900 crores in 2018 , that is nearly 3 % profit margins but now let’s check their free cash flows to understand their valuations as that would tell me how much money is the company earning In 2018, they had free cash flows of 4 000 crores compared to 14 000 crores in 2017. They are declining rapidly but let me give you updated about their recent quarter. They posted great numbers in their domestic business they are increasing their profits dramatically. They increased their market share in passenger and commercial vehicles but JLR had some issues. I’m sure you read the loss of 27 000 crores because of asset impairment JLR had made several investments but after some time, they didn’t get the results they expected and there was one main issue, depreciation. Let me explain with one example Imagine you buy a new car for 5 lakh rupees . If you try to sell the same car next year, you won’t get 5 lakh rupees as the value has decreased that is known as depreciation. In order to avoid the depreciation and due to lower results, they decided to book a one time asset impairment so you will see their assets decrease but it will save them money of depreciation but now the question is, whether I will invest in the company or not I will keep tracking the company but I don’t want to invest yet their domestic business is performing really well and I like it a lot but their main problem lies in JLR. As we don’t know how Brexit will impact the company please remember, they earn the majority of their revenues from JLR

100 Replies to “हिंदी – Tata motors stock review ( Valuations )”

  1. Sagar tell me one question everst industri profit 58 crore but cashflow 120 crore
    How was company profit 58 crore but cash flow 120cr kese tell me

  2. I would like to add the slowdown in China. This has affected JLR but it also affected US auto companies as China id s big contributor to big auto companies.

  3. Sagar Bhai sub thank you so much Mera tata motor 390 rupya Mai 150 share kharid Kiya tha AVI ghirke 152 aa giya kiya karna chahiye batana please

  4. Great video Sagar. Just to add they are investing heavily on JLR and have plans to invest close to 1.2lakhs cr over next 3 yrs exclusively on Jlr which will involve a lot of external debt and further dent on FCF. Considering their domestic business I always feel it would have an excellent company if they wud have run JLR as Separate entity. Their Indian CV and LCV business is huge and has immense potential.

  5. First of all I would like to say that your videos are very good..
    From which website we can see free cash flow of companies because in maximum websites cash from operations data is given

  6. sagar sir ,purchase of stock in trade and change in inventories ke bare me bataiye. mere pass mirza international h 116 pr 1200 share.

  7. Sir,
    I request , please make a video on NPS National Pension Scheme, 8 Fund Manager there, which fund manager I invest
    Please guide.

  8. Each tym a comp charges depreciation as an expenses on its income statement, its increases accumulated depreciation by d same amt fr d period. So I guess they would have took the best decision to booked the one time loss on depreciation…its reali good to noe ab8 Tata in details….appreciated your passion… BT buddy health also imp so take care n get well soon.

  9. Aakhir aap kon see company ke share kharide hai.. please batavo sir, koun see company achhe hai abhi invest Karne ke liye

  10. Hi Sagar,great video..Could you please share your views regarding sterlite technologies and Meghmani Organics please.

  11. Reliance Ind share Real value. ????
    Reliance Jio Real value. ????
    Reliance retail real stories ????
    Reliance Ind Share 3 year target
    Rs 20000 is True news. ?????
    More videos Reliance Share value. ??
    Tata MOTOR Jaguar Land rover Sher value. Tata MOTOR Sher Real value. ????? Target 10000 is true news. ???

  12. Could you comment on the future of "electrical vehicles" in India and which companies are working towards it?
    And also when would it be ideal to think of and invest into them?

  13. Superb brother

    You Analysis very deeply of each and every aspect of the script….

    Can you create videos of emerging script which have good business but now the value is underlying

  14. I have brought 10000 shares at 430 what do I do… huge loss. No option so holding. Any hope of this share recovering March

  15. Hi Sagar, The explanation is very simple and to the point. I like your videos and the method of explaining about company.. If you don't mind can please tell about BOMBAY DYEING

  16. Hi Sagar sir.. my name is Asha Suvarna.. I am from Bangalore.. Can you please analyse Kamat Hotels stock? It is a small cap but face value 10 rs and negative book value stock.. debt is main issue and OPM and NPM are high.. please review it.. It looks very cheap to buy now because crash from 150 to 40 rs..

  17. Naa it;s funa ka mental wakeme up whenit crosses 200 . if it ever cross 200 buy it else forget it . there are 49 other good stock in indian ppls. whenever goes down goes down :xD

  18. One more nice video Sagar and the good thing is that you shown the reason why Tata booked such huge amount of loss that can be expected from investor which is explain by very few peoples those whom analyse the statement very deeply thanks thanks again

  19. Hi . Ur videos r good n love to see them .. I have a question for u . Would u like to invest In 8k miles for next 5 to 10 year. Is it safe? Or it's like burning money .

  20. As you making video, and public watching it.. So please make sure you tell them your personal opinion on
    1.hold or sell(who already have) 2.buy (who want to buy)
    Just your opinion… To satisfy your viewers.

  21. sir please make video on meghmani organic,manali petro, these r also a good fundamental companies in chemical sector,but wht abt coroporate governess issues in meghmani?

  22. Bhai can u please make a video on pc jewellers… Since last year its CAGR is falling.. And its share price has fallen exponentially..

  23. I wish I understood your language. I only speak English & Spanish. I own Tata motors ADR in US stock market. And was interested in your analysis.

  24. Sagr bhai maine aapki back to video dekhi h aisi koi video btao jiske last me aapne boli mai isme invest krunga

  25. Sir from where u collect all these information.. Please reply🙏.sir.. Their annual report is of 366 pages.. Which makes it difficult for me to keep track of all information..

  26. Please flash CMP of stock and the date of making video so that people watching it in next week, month can relate to your analysis

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