Tata Motors
BSE SENSEX
31,882
S&P CNX
10,006
11 September 2017
Update
| Sector:
Automobiles
CMP: INR375
TP: INR542(+45%)
Buy
JLR: New products to drive volumes, Fx to drive margins
India business to breakeven at PAT level in FY18
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg. Val, INRm
Free float (%)
TTMT IN
3,396.6
571 / 358
-2/-28/-45
1,189.8
20.0
3565
65.3
We hosted management of Tata Motors (TTMT) at our 13 Motilal Oswal Annual Global
Investor Conference (AGIC). The company’s commentary and the available levers
vindicate our view that the worst of operating performance is behind us. We are also now
more confident about an impending turnaround in the operational and financial
performance of JLR and India business. Key takeaways:
th
Financials Snapshot (INR b)
2017
2018E 2019E
Y/E Mar
Net Sales
2,697
3,009 3,817
EBITDA
369
364
563
NP
67
76
203
Adj. EPS (INR) 19.8
22.4
59.8
EPS Gr. (%)
(48.4)
13.3 166.5
BV/Sh. (INR)
171
195
256
RoE (%)
9.8
12.3
26.6
RoCE (%)
9.2
7.3
16.3
P/E (x)
18.9
16.7
6.3
P/BV (x)
2.2
1.9
1.5
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
34.7
34.7
33.0
DII
16.1
15.5
16.8
FII
23.5
23.2
25.0
Others
25.7
26.6
25.2
FII Includes depository receipts
Stock Performance (1-year)
Tata Motors
Sensex - Rebased
650
575
500
425
350
JLR is expected to outperform industry, driven by a favorable product pipeline,
with six launches planned over the next 12-15 months, including three new
rollouts (Velar, E-Pace and I-Pace), one upgrade (Evoque) and two refreshes
(RR and RR Sport). The company expects JLR’s retail sales to grow 10% in FY18
(v/s +4% in FY18 YTD and +16% in FY17).
Fx hedge losses are likely to start moderating substantially 4QFY18 onward.
Based on the current spot rates, hedge losses for FY19 would be negligible.
JLR has revised its hedging policy from May 2017, with one-year forward
hedging of up to 65% of net Fx exposure (as against up to 85% hedge earlier).
Jaguar I-Pace (full EV) will be launched by September 2018. JLR plans to offer
an electric variant (including hybrids) of each new JLR model line from 2020.
Competitive intensity remains very high, especially in the US market. This is
particularly evident from the very high incentives for premium sedans, while
the incentives on SUVs are relatively low. With several new products and
refreshes of RR/RR Sport, incentives are expected to start moderating from
4QFY18.
It expects EBIT margin of 6% in FY18 (in line with our estimate and compared to
1.2% in 1QFY18), driven by moderating incentives from 4QFY18, operating
leverage and favorable Fx. For the medium term, it expects an EBIT margin of
8-10%, in line with our estimate of 9.5% for FY19 and 8.8% for FY20.
It is targeting cost savings of ~INR15b in FY18, driving PAT breakeven in FY18.
Our estimates for the India business do not factor in for this swift turnaround
in FY18. In fact, our current estimates indicate PAT breakeven only in FY20.
Valuation and view:
JLR is poised for a sharp recovery, driven by its (a) promising
product pipeline, (b) beneficial Fx movement, (c) conducive mix, (d) favorable
operating leverage and (e) improved FCF conversion. India business is interestingly
positioned, with several levers to drive turnaround for both PVs and CVs. We
estimate ~74% PAT CAGR over FY17-19 (albeit on a low base, after declining at
~33% CAGR over FY15-17). The stock trades at 16.7x/6.3x FY18E/FY19E
consolidated EPS. We maintain
Buy
with a target price of INR542 (June 2019 SOTP-
based).
Jinesh Gandhi - Research Analyst
(Jinesh@MotilalOswal.com); +91 22 6129 1524
Deep A Shah - Research Analyst
(Deep.S@MotilalOswal.com);+912261291533
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Tata Motors
Exciting new launch pipeline for JLR, benefit to start reflecting from Sep-18
JLR’s plan to launch six products over the next 12-15 months appears to be on
track. This is post the recent launch of the all-new Discovery, which is yet to fully
ramp-up.
For Discovery, it is expecting the new model to clock retails of over 60,000 in
FY18 (v/s FY17 retails of 42k v/s 51k in FY16). Ramp-up of Discovery has been
slower than expected due to supply constraints. Discovery has a waiting period
of ~2 months.
It is in process of launching Velar globally (already rolled out in the US;
upcoming in China). The full benefit of Velar will reflect only in FY19, and it
expects volumes of over 75,000 units (v/s our estimate of 60,000 units).
E-Pace retails will start from January 2018, with expectation of volumes in
between XE (~45k) and F-Pace (~75k). E-Pace would be contract-manufactured
at Magna Steyr’s Austria plant.
I-Pace (pure EV) will be launched by September 2018, and would be contract-
manufactured at the Magna Steyr plant.
Refreshed Range Rover and Range Rover Sport will be launched in January 2018.
Fully upgraded Evoque will be launched by 2HCY18.
Lastly, in China JV, it would be launching locally made XE LWB from 4QFY18 and
E-Pace from 2QFY19. Local manufacturing should help XE volumes in China, as
currently XE is not competitive enough compared to locally made products by
German peers.
Management expects JLR to outperform in most of the markets on the back of
its strong product lifecycle. It expects retail volumes to grow 10% in FY18 (v/s
+4% in FY18 YTD and +16% in FY17).
Exhibit 1: JLR has six SUV launches planned over next 15 months
Model
New Discovery
Range Rover Velar
Range Rover
Range Rover Sport
E-Pace
I-Pace (EV)
New Evoque
Type
Upgrade
New launch
Refresh
Refresh
New launch
New Launch
Upgrade
Expected time-line
Segment
Mar-17
SUV
Jul-17
SUV
Jan-18
SUV
Jan-18
SUV
Jan-18
SUV
Sep-18
Electric SUV
2HCY18
SUV
Source: Company, MOSL
Exhibit 2: New Discovery ramp-up impacted by supply-side issues
8,000
6,000
4,000
2,000
0
New Discovery
CY16
CY17
Source: Company, MOSL
11 September 2017
2

Tata Motors
Forex to turn favorable from FY19
JLR expects realized Fx hedge losses to remain at 1Q level for 2Q/3QFY18, and
then start moderating substantially from 4QFY18. Based on the current spot
rates, hedge losses for FY19 would be negligible.
As of June 2017, unrealized Fx hedge loss for the next 12 months stood at
GBP1.1b (v/s GBP1.6b as of Mar-17) and beyond 12 months at GBP564m (v/s
GBP1.1b as of Mar-17).
For the first time, JLR disclosed it Fx hedge book position in TTMT’s FY17 annual
report. Based on our estimate of FY18 USD revenues, it appears that JLR has
hedged ~55% of its FY18 USD exposure at USDGBP 0.667 (v/s spot rate of 0.76).
This corroborates with management’s guidance of a substantial reduction in Fx
hedge losses from 4QFY18.
Exhibit 3: GBP1.59b losses to be booked in P&L in FY18 (based on Mar-17 MTM)
GBP m
1,591
1,136
521
593
810
655
FY15
FY16
FY17
1QFY18
Net current - Derivative loss
Net Non-current - Derivative loss
Source: Company, MOSL
Exhibit 4: FY18 hedges and hedge rates for key currencies
Hedge (GBP m)
3,446
2,779
0.667
0.833
1,761
Avg Strike Rate
Exhibit 5: Only 52% of FY18 USD exposure is estimated to be
hedged at USD 0.667
US Revenue hedge (%)
68
75
52
0.657
0.643
Hedge rate
0.667
0.100
USD
CNY
EUR
Source: Company; MOSL
FY16
FY17
FY18E
Source: Company; MOSL
11 September 2017
3

Tata Motors
Exhibit 6: Trend in USD hedges (GBP m)
USD Hedges (GBP b)
<1 yr
>1 yr
Exhibit 7: Trend in CNY hedges (GBP m)
CNY Hedges (GBP b)
<1 yr
>1 yr
5.3
6.3
5.9
4.4
3.7
3.3
FY16
4.1
2.9
FY15
3.5
FY16
2.8
FY17
Source: Company
2.4
FY15
3.4
FY17
Source: Company
Exhibit 8: Trend in EUR hedges (GBP m)
EUR Hedges (GBP b)
<1 yr
>1 yr
Exhibit 9: Trend in other currency hedges (GBP m)
Others Hedges (GBP b)
<1 yr
>1 yr
3.9
2.1
1.8
FY15
2.1
1.5
FY16
1.8
FY17
Source: Company
0.7
1.1
FY15
1.1
1.4
FY16
1.8
1.7
FY17
Source: Company
Revises Fx hedging policies, lowers 1Y forward hedge to 65% from 85%
JLR has revised it hedging policy from May 2017 to provide cushion against any
demand shocks. It now hedges up to 65% of 1-year forward net Fx exposure (as
against up to 85% earlier).
In FY17, JLR did not benefit from the favorable spot rates on unhedged portion,
as actual volumes turned out to be lower than estimates, and thus, hedges
covered almost 100% of the exposure.
Furthermore, the company is aligning its sourcing base with the global sales
profile, including development of its international manufacturing footprint. This
would provide natural hedge by aligning the Fx profile of cost with sales.
11 September 2017
4

Tata Motors
Exhibit 10: JLR has hedged up to ~75% of exposure in the past
Fx hedges (% of revenues)
68
75
52
51
71
64
44
28
29
23
33
35
FY16
FY17
FY18E
US
China
Europe
ROW
Source: Company, MOSL
“Every new Jaguar Land
Rover model line will be
electrified from 2020, giving
our customers even more
choice. We will introduce a
portfolio of electrified
products across our model
range, embracing fully
electric, plug-in hybrid and
mild hybrid vehicles,”
Dr Ralf Speth, CEO, JLR
Electric vehicles – every new JLR model from 2020 to offer electric option
JLR will commence sales of Jaguar I-Pace (full EV) in the UK, the US and China
from September 2018. It would be showcasing the production version at the
upcoming Frankfurt Motorshow (14-24 September).
JLR would be offering an electric variant (including hybrids) of all new JLR model
lines from 2020.
It would be buying fuel cells for EV batteries from LG Chemicals, and make
battery pack in-house. Also, it has developed a battery management system in-
house.
st
Exhibit 11: JLR would be 1 among its traditional competitors to launch mainstream EVs
Time line of EV launches
JLR
Audi
Daimler
BMW
Model name
I-Pace
Audi E-tron
EQ
I Series
Schedule
FY19
FY19
FY20
FY20
Source: Company, MOSL
High variable marketing spend to moderate from 4QFY18 with several new
products
Competitive intensity remains very high, especially in the US market. This is
particularly evident from the very high incentives for premium sedans, while the
incentives on SUVs are relatively low.
Average incentives for JLR stand at USD2500-3000, with incentives on Jaguar
higher by 2.5x-3x than Land Rover.
With several new products and refreshes of RR/RR Sport, incentives should start
moderating from 4QFY18.
While the US market outlook is weak currently, the proposed tax reforms could
improve the prospects for CY18. This also should help in moderating incentives
in the US market.
JLR guides for EBIT margin of 6% in FY18 and 8-10% in medium term
It expects FY18 EBIT margin of 6% (in line with our estimate and compared to
1.2% in 1QFY18), driven by moderating incentives from 4QFY18, operating
leverage, and favorable Fx from 4QFY18.
11 September 2017
5

Tata Motors
However, fixed marketing spend will increase on account of the two new brand
launches (Velar and E-Pace) in FY18 and I-Pace in FY19.
For the medium term, it expects EBIT margin of 8-10%, which is in line with our
estimate of 9.5% for FY19 and 8.8% for FY20.
Also, amendment in the method of calculating retirement benefits based on a
career average basis rather than on final salary at retirement (from Apr-17)
would drive annual savings of GBP55m.
Exhibit 13: EBIT margin expected to improve sharply in FY19,
driven by operating leverage and Fx
13.0
EBIT Margins (%)
14.1
8.0
6.0
6.0
9.5
8.8
Exhibit 12: JLR’s EBIT margin expected to improve from
1QFY18 levels
20.0
15.0
10.0
5.0
-
EBIT Margin (%)
10.8 11.3 10.8
Source: Company, MOSL
Source: Company, MOSL
Guides for India business PAT breakeven in FY18
It expects M&HCV volumes to remain flat in FY18 and LCV & buses to grow 10%.
In PVs, it has a model roll-out plan ready until 2022, with two new launches per
year. It is targeting a market share recovery of 500bp each in CVs and PVs.
While it has launched products with EGR technology in trucks with engine size
below 160hp, it firmly believes in superiority of SCR technology across the
ownership cycle.
It is targeting cost savings of ~INR15b in FY18, driving PAT break-even in FY18. It
expects to save ~INR3b from staff cost, ~INR1b from lower RM cost on account
of price renegotiation with vendors post GST, improvement in efficiencies and
fixed cost savings.
Our estimates for the India business do not factor in this potential swift
turnaround in FY18. In fact, our current estimates indicate PAT break-even only
in FY20.
If we factor in cost savings of ~INR15b in FY18/19, it would lead to consolidated
EPS upgrade of 19%/7% of FY18/19 consolidated EPS and ~8% upgrade in our
SOTP-based TP.
11 September 2017
6

Tata Motors
Exhibit 14: We estimate standalone business to be loss-making till FY20
20.6 17.7
4.4
14.9 18.1 13.4
2.6
Adj PAT (INR b)
6.0
1.9
-8.0
-1.1
-46.5
-21.3
-15.2
Source: Company, MOSL
Valuation and view
Strong product-cycle positioning for all major JLR brands to aid volumes over
FY18-19E:
~50% of volumes are expected to accounted by new/refreshed
models over the next two years (as it launches two new products, six refreshes
and forays into the EV space before its peers). We expect JLR's volumes
(including JV) to grow at a CAGR of 19% over FY17-19, driven by 14% CAGR for
Land Rover and 28% CAGR for Jaguar on the back of the launch of two new
models and six major refreshes.
JLR’s profitability has many levers:
JLR has several levers, both cyclical and
structural, in the form of (a) favorable Fx, as realized hedge rates improve from
3QFY18, (b) better product mix (higher share of RR, RR Sport, and Discovery), (c)
operating leverage, (d) cost savings on modular platform on full roll-out of
modular strategy, and (e) manufacture of Ingenium engines in-house v/s
sourcing engines from Ford. The convergence of the multiple factors stated
above is expected to drive up EBITDA margin by 330bp from 12.1% in FY17E to
15.4% in FY19E.
India business turnaround on the anvil? :
Recovery in LCVs, stability in M&HCVs
and a favorable product lifecycle should result in the return of operating
leverage. Furthermore, TTMT’s several initiatives to cut cost by ~INR15b in FY18,
if attained, would lead to PAT break-even for the India business (v/s est. net loss
of ~INR15b). If we factor in cost savings of ~INR15b in FY18/19, it would lead to
consolidated EPS upgrade of 19%/7% of FY18/19 consolidated EPS and ~8%
upgrade to our SOTP-based target price.
Strong margins, reduced capex intensity to result in strong FCFF and RoE
improvement:
Post commissioning of the Slovakia plant, capex intensity for JLR
is likely to reduce from FY19. This, coupled with an improvement in the
operating performance, would improve FCFF in FY18 and FY19. Consolidated
RoE should improve over FY17-19E to 26.6%.
Valuation and view:
JLR is poised for a sharp recovery, driven by its (a)
promising product pipeline, (b) beneficial Fx movement, (c) conducive mix, (d)
favorable operating leverage and (e) improved FCF conversion. India business is
interestingly positioned, with several levers to drive turnaround for both PVs
and CVs. We estimate ~74% PAT CAGR over FY17-19 (albeit on a low base, after
declining at ~33% CAGR over FY15-17). We maintain
Buy
with a target price of
INR542 (June 2019 SOTP-based).
7
11 September 2017

Tata Motors
Exhibit 15: TATA MOTORS: Sum-of-the-parts valuation
INR B
Tata Motors – Standalone
JLR (Adj for R&D capitalization)
JLR - Chery JV EBITDA Share
HV Axles
HV Transmission
Tata Technologies
Tata Daewoo
Total EV
Less: Net Debt (Ex FCCB & TMFL)
Add: Other Investments
Tata Motors Finance
Other Associates/JVs
Tata Sons
Total Equity Value
Fair Value (INR/Sh) - Ord Sh
Upside (%)
Fair Value (INR/Sh) - DVR
Upside (%)
Valuation Parameter
EV/EBITDA
EV/EBITDA
EV/EBITDA
EV/EBITDA
EV/EBITDA
EV/EBITDA
EV/EBITDA
Multiple (x)
8.0
3.0
3.0
8.0
8.0
8.0
5.0
FY19E
287
1,156
108
8
6
54
23
1,642
103
40
73
104
1,756
517
37.9
361
72.2
FY20E
367
1,211
151
8
6
60
25
1,828
-14
44
105
104
2,095
617
64.5
431
105.6
Source: MOSL
P/BV
P/BV
20% discount
Fully Diluted
EV/EBITDA
EV/EBITDA
1
1
Exhibit 16: Comparative valuation
Auto OEM's
Bajaj Auto
Hero MotoCorp
TVS Motor
M&M
Maruti Suzuki
Tata Motors
Ashok Leyland
Eicher Motors
Auto Ancillaries
Bharat Forge
Exide Industries
Amara Raja Batteries
BOSCH
Endurance Tech
CMP
(INR)*
2,914
3,959
635
1,295
7,973
375
115
32,629
1,162
220
796
21,975
999
Rating
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
TP
(INR)
3,281
3,818
612
1,620
8,819
542
118
35,854
1,353
269
986
21,994
1,059
P/E (x)
FY18E FY19E
21.2
17.8
20.9
19.9
44.1
26.8
18.9
15.7
28.3
21.3
16.7
6.3
22.2
16.5
38.3
29.9
31.8
23.9
28.2
40.2
34.1
23.0
20.0
21.0
31.1
26.3
EV/EBITDA (x)
FY18E FY19E
15.4
12.7
13.5
13.0
28.1
18.0
13.5
11.5
17.9
13.9
4.3
2.5
11.3
8.6
29.4
25.3
17.7
14.8
15.4
25.1
16.2
14.0
12.5
11.4
19.6
13.5
RoE (%)
FY18E FY19E
22.2
24.0
34.6
31.5
25.7
33.6
13.9
14.9
20.1
22.8
12.3
26.6
23.2
27.0
37.0
35.4
19.2
14.1
17.3
18.0
21.6
22.8
15.0
19.9
20.7
23.3
Div Yield (%) EPS CAGR (%)
FY18E FY19E
FY17-19E
2.2
2.7
11.2
2.3
2.3
8.5
0.5
0.7
42.1
1.5
1.5
23.2
1.1
1.3
22.7
0.1
0.1
73.7
1.7
2.0
23.7
0.5
0.5
33.6
0.7
1.0
0.5
0.8
0.4
0.9
1.0
0.7
1.1
0.7
39.0
16.3
16.4
22.1
27.1
11 September 2017
8

Tata Motors
Tata Motors|
Story in Charts: Strong recovery in EPS with ~74% CAGR
Exhibit 17: Expect JLR (incl JV) volume CAGR of ~19% over
FY17-FY19 led by new launches
JLR volumes (incl JV; '000 units)
29.1
23.2
18.3
15.5
9.5
15.6
10.4
14.1
14.7
14.8
Growth (%)
Exhibit 18: Margins to expand as volumes ramp up
EBITDA (GBP m)
17.5
18.9
14.1
15.4
12.1
12.4
EBITDA margin (%)
FY12
FY13
FY14
FY15
FY16
FY17E FY18E FY19E
Source: Company, MOSL
FY12
FY13
FY14
FY15
FY16
FY17E FY18E FY19E
Source: Company, MOSL
Exhibit 19: JLR to remain FCF-positive despite high
capex plans
CFO
Capex
FCF
Exhibit 20: S/A business to recover on economic revival
Revenues (INR b)
13.0
18.0
5.9
3.5
Growth (%)
18.4
12.7
-17.6
FY12
FY13
FY14
FY15
FY16
FY17E FY18E FY19E
Source: Company, MOSL
FY12
FY13
-23.4
FY14
FY15
FY16
FY17E FY18E FY19E
Source: Company, MOSL
Exhibit 21: S/A margins to improve on volume recovery
EBITDA (INR b)
8.1
4.8
7.9
3.8
-1.4
-2.2
(5)
FY12
FY13
FY14
(8)
FY15
FY16
FY17E FY18E FY19E
Source: Company, MOSL
34
17
4.4
23
36
EBITDA Margins (%)
6.1
Exhibit 22: EPS CAGR of 74% over FY17-19E
EPS (INR)
Growth (%)
166.5
28.9
-16.8
41.3
-1.1
44
21
-12.0
-48.4
38.4
19.8
13.3
37.5
FY12
31.2
FY13
44.1
FY14
43.6
FY15
22.4
59.8
FY16E FY17E FY18E FY19E
Source: Company, MOSL
11 September 2017
9

Tata Motors
Key operating metrics
Exhibit 23: Snapshot of revenue model
000 units
JLR
Jaguar
Growth (%)
% of Total JLR Vols
Land Rover
Growth (%)
% of Total JLR Vols
Total Volumes
Growth (%)
ASP (GBP '000/unit)
Growth (%)
Net JLR Sales (GBP b)
Growth (%)
DOMESTIC
MH&CVs
Growth (%)
LCVs
Growth (%)
Total CVs
Growth (%)
Total PVs
Growth (%)
Total Volumes
Growth (%)
ASP (INR 000/unit)
Net S/A Sales (INR b)
Growth (%)
FY12
54
2.0
17.2
260
36.6
82.8
314
29.1
43
6.1
14
36.9
221
3.4
364
23.3
585
14.9
338
3.1
923
10.3
588
543
13.0
FY13
58
7.0
15.5
314
20.7
84.5
372
18.3
42
-1.3
16
16.8
153
-31.1
429
17.8
581
-0.7
229
-32.2
810
-12.2
552
447
-17.6
FY14
79
37.2
18.4
351
11.6
81.6
430
15.5
45
6.3
19
22.8
122
-19.7
299
-30.3
421
-27.5
145
-36.5
567
-30.1
605
343
-23.4
FY15
76
-3.5
16.3
394
12.4
83.7
471
9.5
46
3.0
22
12.8
143
16.5
222
-25.8
365
-13.5
138
-5.3
502
-11.4
723
363
5.9
FY16
102
33.5
20.0
442
12.2
86.8
509
8.2
44
-5.8
22
1.9
176
23.6
205
-7.7
381
4.6
152
10.1
533
6.1
804
428
18.0
FY17
179
75.1
33.4
422
-4.5
78.9
535
5.0
46
4.0
24
9.2
176
-0.3
209
2.1
385
1.0
157
3.9
542
1.8
818
444
3.5
FY18E
207
15.8
34.7
479
13.4
80.2
597
11.6
48
5.5
29
17.8
182
3.2
225
7.5
406
5.5
195
23.9
601
10.9
874
525
18.4
FY19E
294
42.0
39.8
551
15.0
74.5
739
23.8
49
3.0
37
27.5
199
9.5
253
12.4
451
11.1
216
10.9
668
11.1
886
592
12.7
11 September 2017
10

Tata Motors
Financials and Valuations
Income Statement (Consolidated)
Y/E March
Total Income
Change (%)
Expenditure
EBITDA
% of Net Sales
Depreciation
EBIT
Product Dev. Exp.
Interest
Other Income
EO Exp/(Inc)
Forex Gain/ (Loss)
PBT
Tax
Effective Rate (%)
Reported PAT
Change (%)
% of Net Sales
Minority Interest
Share of profit of associate
Net Profit
Adj. PAT
Change (%)
2013
1,888,176
14.0
1,622,487
265,689
14.1
75,693
189,996
20,216
35,533
8,115
876
5,151
136,335
37,710
27.7
98,625
-27.3
5.2
-837
1,138
98,926
99,560
-16.3
2014
2,328,337
23.3
1,954,308
374,029
16.1
110,782
263,248
25,652
47,338
8,286
2,777
7,077
188,690
47,648
25.3
141,042
43.0
6.1
-595
-537
139,910
141,986
42.6
2015
2,631,590
13.0
2,210,452
421,138
16.0
133,886
287,252
28,752
48,615
8,987
930
917
217,026
76,429
35.2
140,597
-0.3
5.3
-868
134
139,863
140,465
-1.1
2016
2,730,456
3.8
2,312,693
417,763
15.3
167,108
250,655
34,688
48,891
8,854
18,504
16,169
141,258
30,251
21.4
111,007
-21.0
4.1
-989
5,775
115,793
130,334
-7.2
2017
2,696,925
-1.2
2,327,802
369,124
13.7
179,050
190,074
34,136
42,380
7,545
-11,146
39,101
93,148
32,512
34.9
60,636
-45.4
2.2
-1,022
14,930
74,544
67,288
-48.4
2018E
3,009,461
11.6
2,645,640
363,821
12.1
202,306
161,515
39,218
40,658
6,947
0
-8,380
96,966
39,336
40.6
57,630
-5.0
1.9
-1,076
19,666
76,220
76,220
13.3
(INR Million)
2019E
3,816,830
26.8
3,253,904
562,926
14.7
240,637
322,289
42,969
42,970
7,224
0
0
243,573
62,513
25.7
181,061
214.2
4.7
-1,189
23,230
203,102
203,102
166.5
Balance Sheet (Cons.)
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr.Assets
Inventory
Sundry Debtors
Cash & Bank Bal.
Loans & Advances
Current Liab. & Prov.
Sundry Creditors
Other Liabilities
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2013
6,381
369,992
376,373
557,223
-24,094
913,206
1,205,654
570,818
634,836
60,000
41,024
90,577
829,538
209,690
109,427
211,127
280,739
742,769
447,801
134,250
86,769
913,206
2014
6,438
649,597
656,035
549,545
-7,748
1,202,038
1,329,282
688,154
641,128
332,626
49,788
106,867
1,046,103
272,709
105,742
297,118
273,241
974,474
573,157
199,707
71,629
1,202,038
2015
6,438
556,181
562,619
692,115
-13,900
1,245,167
1,582,066
744,241
837,825
286,401
46,970
153,367
1,034,685
292,723
125,792
321,158
256,948
1,114,081
574,073
328,305
-79,396
1,245,167
2016
6,792
782,732
789,524
619,612
44,748
1,458,212
1,976,068
911,348
1,064,720
259,189
7,598
237,670
1,102,234
326,557
135,709
304,604
254,033
1,213,200
615,618
460,226
-110,965
1,458,212
2017
6,792
573,827
580,619
744,891
11,740
1,341,781
2,043,106
1,090,398
952,708
336,988
6,733
203,379
1,237,735
350,853
140,756
360,779
291,474
1,395,762
625,326
622,314
-158,027
1,341,782
2018E
6,792
654,287
661,079
726,807
11,740
1,405,234
2,464,711
1,292,704
1,172,007
250,000
6,733
223,045
1,192,218
391,642
164,902
225,326
306,474
1,438,770
676,098
597,770
-246,552
1,405,234
(INR Million)
2019E
6,792
861,628
868,420
708,724
11,740
1,595,680
2,832,853
1,533,341
1,299,512
250,000
6,733
246,275
1,466,291
496,711
209,141
325,091
321,474
1,673,131
836,565
627,424
-206,840
1,595,680
11 September 2017
11

Tata Motors
Financials and Valuations
Ratios (Con.)
Y/E March
Basic (INR)
EPS
EPS Fully Diluted
Normalized EPS ^
EPS Growth (%)
Cash EPS
Book Value (Rs/Share)
DPS
Payout (Incl. Div. Tax) %
Valuation (x)
Consolidated P/E
Normalized P/E
EV/EBITDA
EV/Sales
Price to Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2013
31.2
31.2
11.4
-16.8
54.9
118.0
2.0
6.5
12.0
32.9
5.5
0.8
3.2
0.5
28.3
17.0
30.6
21
41
87
2.1
1.5
2014
44.1
44.1
17.8
41.3
78.5
203.8
2.0
4.6
8.5
21.1
3.6
0.6
1.8
0.5
27.5
19.2
38.7
17
43
90
1.9
0.8
2015
43.6
43.6
14.4
-1.1
85.2
174.8
0.0
0.0
8.6
26.1
3.4
0.5
2.1
0.0
23.1
15.7
39.2
17
41
80
2.1
1.2
2016
38.4
38.4
7.2
-12.0
87.6
232.5
0.0
0.0
9.8
52.4
3.2
0.5
1.6
0.0
19.3
15.1
34.5
18
44
82
1.9
0.8
2017
19.8
19.8
-10.6
-48.4
72.5
171.0
0.0
0.0
18.9
-35.4
3.9
0.5
2.2
0.0
9.8
9.2
22.6
19
47
85
2.0
1.3
2018E
22.4
22.4
-9.4
13.3
82.0
194.7
0.3
1.4
16.7
-40.1
4.3
0.5
1.9
0.1
12.3
7.3
16.7
20
48
82
2.1
1.1
2019E
59.8
59.8
21.8
166.5
130.7
255.7
0.3
0.5
6.3
17.2
2.5
0.4
1.5
0.1
26.6
16.3
32.3
20
48
80
2.4
0.8
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Int/Div. Received
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
Other Items
CF from Op Activity
Extra-ordinary Items
CF after EO Items
(Inc)/Dec in FA+CWIP
(Pur)/Sale of Invest.
CF from Inv Activity
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividends Paid
CF from Fin Activity
Inc/(Dec) in Cash
Add: Beginning Bal.
Closing Balance
E: MOSL Estimates
2013
98,926
8,062
75,648
-22,231
-680
64,617
224,343
4,342
228,684
-187,203
-54,984
-242,188
7
45,082
-46,560
-15,087
-16,558
-30,061
153,550
123,488
2014
139,910
6,933
110,736
-43,083
57,744
88,983
361,223
7,221
368,444
-269,252
-36,611
-305,863
1
30,092
-61,706
-7,220
-38,832
23,749
142,531
166,280
2015
139,863
7,777
133,864
-41,940
-36,718
136,570
339,415
20,191
359,606
-315,396
-37,570
-352,966
0
122,288
-63,070
-7,204
52,014
58,655
152,629
211,283
2016
110,238
8,258
170,142
-19,939
25,515
96,855
391,069
8,857
399,925
-326,232
-68,134
-394,366
74,332
-47,483
-57,039
-1,739
-31,930
-26,371
219,875
193,505
2017
74,544
7,545
179,050
-65,520
103,236
1,068
299,923
11,146
311,069
-144,837
34,291
-110,546
-283,449
125,280
-42,380
0
-200,550
-27
360,779
360,752
2018E
76,220
6,947
202,306
-39,336
-46,928
1,076
200,285
0
200,285
-334,617
-19,666
-354,283
5,344
-18,084
-40,658
-1,104
-54,502
-208,500
225,326
16,826
2019E
203,102
7,224
240,637
-62,513
60,053
1,189
449,692
0
449,692
-368,142
-23,230
-391,372
5,344
-18,084
-42,970
-1,104
-56,813
1,507
325,091
326,598
11 September 2017
12

Tata Motors
NOTES
11 September 2017
13

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Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
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