1. At a Glance

Tata Motors isn’t just about Indica taxis anymore—it’s a cocktail of luxury JLR SUVs, 37% CV market share, 53% EV dominance in India, and a ₹2.5 lakh crore market cap. But behind the glamour, quarterly profits swing harder than Virat Kohli’s cover drive. And just when you thought they’d settle down, they throw in a €3.8B Iveco acquisition plus a demerger drama.

2. Introduction

Founded in 1945 as TELCO, Tata Motors grew from making trucks to becoming the only Indian company that also owns British royalty (Jaguar + Land Rover). In FY25, JLR alone made up 71% of revenues, while India CVs and PVs fought for the remaining scraps.

But the stock chart tells another story—down 37% in 1 year, even though PAT is still ₹21,618 Cr. Global tariffs, chip shortages, China slowdown—every auto headline somehow punches Tata Motors twice as hard.

Add to that a dizzying corporate restructure:

• CV business to be split.
• PV + JLR + EVs clubbed together.
• NCLT already sanctioned scheme, demerger due Oct 2025.

Investors are left wondering: “Are we buying a desi Maruti competitor or a wannabe BMW?”

Question: If Tata splits itself into two listed entities, will retail investors finally get clarity—or just two confusing balance sheets instead of one?

3. Business Model – WTF Do They Even Do?

Tata Motors = conglomerate on wheels, broken into:

• Jaguar Land Rover (71%) – Fancy SUVs, iconic Defender, and some luxury sedans nobody in Gurgaon actually buys. FY25 volumes slid—Range Rover down 20%, Jaguar cut in half. Ouch.
• Commercial Vehicles (17%) – Still king in Indian trucks/buses with ~38% share, but volumes slipping as Ashok Leyland revs harder. HCV sales fell, but buses did well (10,000 sold vs 7,700 LY).
• Passenger Vehicles (11%) – Tata is now India’s #3 PV player and the #1 EV player. Nexon EV and Tiago EV basically carry the segment on their small lithium shoulders. PV sales flat, EVs +6% YoY.
• Others (1%) – Financing arm, merged into Tata Capital in May 2025.

Geography split? India 29%, JLR exports everywhere else. Basically, you’re betting on UK luxury + Indian EV dreams + desi trucks.

4. Financials Overview

Commentary: Earnings fell faster than petrol in a leaky tank. Annualised EPS ~₹43 → CMP ₹684 = P/E ~16x, but TTM EPS still ₹57 (P/E ~12x). Basically, valuation is cheap IF profits bounce. Big IF.

5. Valuation – Fair Value Range Only

• P/E Method: EPS ₹57, Auto peers 12–18x.
  → ₹680 – ₹1,025.
• EV/EBITDA Method: FY25 EBITDA ₹55,216 Cr. EV/EBITDA 5–7x.
  → ₹275,000 – ₹385,000 Cr EV. After debt = equity range ₹660 – ₹925/share.
• DCF (conservative growth 8%, WACC 10%):
  → ₹700 – ₹950/share.

Fair Value Range: ₹660 – ₹1,000.
👉 Disclaimer: Educational purposes only, not investment advice.