If someone would have invested Rs 1 lakh in Tata motors in 2010 . What would present value? Let’s find out tata motors stock bonus history
TATA MOTORS
Tata motors is India No 1 automobile company in term of market cap. And revenue. It has around 45% market share in commercial vehicle segment and around 7% in passenger vehicles segment. Tata motor has strong global network like Jaguar and Land rover in UK ( United Kingdom), China & TATA Daewoo in South Korea. It’s product include passenger cars, Trucks, vans, coaches, buses, sports cars, construction equipment & military segment.
Some important key metrics of Tata motors
- Market cap. – 2,25, 708 crore
- CMP (current market price) – Rs 630
- Debt – 23,232 crore
- Cash – 2,605 cr
Weakness And Strength of Tata motors
- Weakness of Tata motors have huge debt
- Strength –
- Latest cutting edge design & technology
- Brand like Jaguar and land rover
- Electric vehicles / Electric ecosystem
Shareholding pattern of Tata motors
01 Promoters – 46.39%
02 MF (Mutual fund) – 8.69%
03 DII – 8.76%
04 FII -19.10%
05 Retail and others- 17.05%
Tata motor share price in 2010 of one share is Rs 150. Let us assume if someone invested Rs 1 lakh in Tata motors he got 667 shares
Let’s find out the present value of 667 shares.
Tata Motors Bonus and stock split history
Tata motors gave 1 times stock split since 2010
01 Stock Split (FV 10 to 2) 2011 – 3,335
In 2023 Tata motors convert your 667 share to 3,335 shares
Present value of 3,335 shares of Tata motors is Rs 2,101,050
Means Tata motors convert your Rs 1 lakh into Rs 21 lakh (approx)
Time period -12 years
CAGR of Tata motors is 52.70%
Note – Compounding is the 8th wonder of this world
Some interesting fact about Tata motors
In present Tata motors balance sheet is unbalance due to high debt. Tata motor is a tata group company. If tata motors reduce its debt in future & do partnership with global partner then it has huge potential to bounce back strongly.
Second point is Electric vehicle play a very important role for tata motors. Tata work aggressively in electric sector because Electric vehicle is future. Tata motors launch some model in electric segment. In electric vehicle segment tata motors have advantages as compared to his competitors because TATA group create Electric ecosystem.
Other TATA parents and subsidiaries helps tata motors
- TATA POWER help in charging station
- Tata steel help steel products like alloy wheel, body parts
- Tata chemicals helps Electric battery
- Tata Elxsi help software in Electric vehicle and design