Information About Tata Motors Stock Price:

Tata Motors is one of the biggest automobile manufacturing companies in the world. The company has a network of its clients across 170 countries, and the products include sports cars, passenger vehicles, buses, trucks, automotive parts, defense vehicles, and many more. The company relies on its innovation-driven technology to deliver better mobility solutions in the field of automobiles. The principal subsidiaries of Tata Motors are Tata Daewoo, Jaguar Land Rover, and Tata Technologies, through which it provides design and engineering solutions. The Tata Motors has incorporated its manufacturing units in India and abroad, including countries like Thailand, Argentina, South Korea, et cetera, to facilitate its services in international markets.

History of Tata Motors:

It was established in 1945 as a part of Tata Group. After that, the primary product line of the company consisted of locomotives. It entered the Indian market by merging with Daimler Benz AG, and in the mid-1950s, the company launched its first commercialized vehicle. In 1991, Tata Motors entered the commercial vehicle market with the launch of the Tata Sierra and Tata Estate.

In the next ten years, Tata Motors launched other essential products like Tata Indica, Tata Sumo, and Tata Nano. These products indeed upgraded the status of Tata Motors by playing a vital part in its success. The company expanded in international markets with the help of acquisitions. Tata Motors bought South Korea's Daewoo Commercial Vehicle Company in 2004, followed by the acquisition of Jaguar Land Rover from Ford Motor in 2008. In 2015, the company took another action towards becoming a global name when it named Lionel Messi as its brand ambassador.

Management of Tata Motors:

Natarajan Chandrasekaran - Chairman, Tata Sons

Tata Sons, the parent company of Tata Group comprising Tata Consultancy Services (TCS), Tata Motors, Tata Steel, Titan, et cetera. After finishing the university, Mr. Chandra joined Tata and work for thirty years with the group. In fact, from 2009-2017, he worked as the CEO of TCS, after which he was appointed as the Chairman of the Board. It was under his supervision that TCS became one of the prominent IT companies in the world. It is one of the biggest private sector employers in India too.

He is a recipient several awards, including the Best CEO Award for 2013 and 2014 by Business Today, and CNN-IBN Indian of the Year 2014 award. Chandra attained Masters degree from Regional Engineering College in Tiruchirappalli.

Guenter Butschek - CEO and MD

Mr. Butschek is the present CEO and MD of Tata Motors. His responsibility includes managing the Indian operations of Tata Motors, along with its regional and international subsidiaries, except for Jaguar Land Rover.

Mr. Butschek was with Airbus Group before joining Tata Motors, where he served as CEO of Airbus for more than four years. He has begun his career with Daimler AG, where he worked for 25 years and held management positions in production, industrialization, and procurement divisions.

Satish Borwankar - COO and Executive Director

Since 1974, Mr. Borwankar has been associated with Tata Motors. He started working with the company as a graduate engineer trainee, and as the years passed, he handled several responsibilities, manufacturing operations, ranging in the field of product development, and quality control.

Listing and Indices of Tata Motors:

In India, Tata Motors Limited is listed, and its shares can be bought and sold on National Stock Exchange, and Bombay Stock Exchange. The Tata Motors is also a part of several other benchmark indices like SENSEX and NIFTY. Three Tata companies are listed on the two significant indices Tata Motors, Tata Steel and TCS. The share price of Tata is considered for calculation of other indices as well such as BSE AllCap, BSE Auto, CNX 100, CNX 200, BSE 200 and many more.

Wealth and Performance of Tata Motors:

Tata Motors Group recorded its consolidated financial statement for the third quarter of Fiscal 2018. It was reported that the net revenue for the third quarter had increased to Rs.74,156 crore, from Rs.64,943 crore in Q3 FY17.

Regarding the sale of commercial units, a total of 3,32,911 units were sold globally - a 15.6% increase from the same quarter last year.

The company has done exceptionally well regarding profit as well. Its net Jaguar Land Rover, a subsidiary of Tata Motors, showed a 14.2% increment in unit sales in China and 18.2% improvement in the market abroad.

For the free cash flow in the third quarter, a negative Rs.5,159 crore was reported owing to higher investments, lower operating profits, and an increase in working capital in Jaguar Land Rover.

Why Invest in Tata Motors Limited?

Tata Motors Limited is one of the prominent commercial vehicle and passenger vehicle brands in the world. Their product line is continually improving which is slowly making it a preferred choice in the cars segment among the middle class.

Innovation drives the company's growth in the field of technology and design. It has been working on the hybrid technology for quite some time now and has already implemented the same across its other categories of vehicle. The modifications made by the company at a fundamental level have already begun to gain the required results, as seen in the results of the current fiscal.

The automobile giant has recorded healthy numbers in its third quarter Fiscal 2018 results, along with a convincing increase in revenue. The maximum amount of the revenue comes from the Asian markets like India and China. Needless to mention, the financial track record of the company is exceptional, and after reporting a profitable growth even in adverse conditions, it is evident that Tata Motors can be trusted to generate consistent returns in the long run.

At the same time, there are other automobile companies in the sector which have the potential to generate higher returns in the long term. Ashok Leyland is one such brand, just because it is considered to be more reliable. It is advisable to look at the performance of the two companies over the years and then arrive at an informed decision.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The BSE or the Bombay Stock Exchange is Asia's oldest and first stock exchange. It is located in Mumbai, erstwhile Bombay, and it was formally established in 1875. An influential stockbroker and a businessman, Premchand Roychand, along with a handful of acquaintances, started the BSE journey in 1855. The BSE had its meetings under Banyan trees in its initial days. The group grew and eventually moved to a permanent place in 1874. BSE’s office is very appropriately named ‘Dalal Street’ which translated to Broker Street in Hindi. BSE operated as a floor trading exchange for a long time before ascending the digital ladder in 1995. They implemented an automated trading platform which had a capacity of 8 million per day. BSE went global in 2012, by joining the United Nations Sustainable Stock Exchange as a partner. Subsequently, in 2016, BSE established the first international exchange of India, called INX.

National Stock Exchange (NSE)

With an aim to induce transparency to the Indian capital market, the Indian Government implored a group of leading financial institutions for an effective solution. Accordingly, these financial institutions, along with the Government's support, established the first demutualized electronic exchange of India in 1992, known as the NSE. Since its inception, the NSE functioned on a totally automated screen-based digital trading system, which offered a great platform to connect the investor base of the entire country and offer them an easy trading facility. NSE was India's first electronic exchange and currently offers services pertaining to several segments, such as equity derivatives, clearing and settlement services in equity, trading, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is National Stock Exchange of India's benchmark broad-based stock market index for the country's equity market. It lists 50 selected Indian companies across 12 sectors that own the largest and most liquid Indian securities. Hence, it is popularly called NIFTY 50. The Nifty index represents the weighted average of the stock value of those 50 companies. The India Index Services and Products or IISL, a company which is focused on an index as a core product, owns and manages the Nifty. Through one efficient portfolio, the Nifty exposes investment managers to the current status of the Indian market and helps in determining promising investment opportunities.

SENSEX Index

Similar to NSE's Nifty 50, BSE also has a stock market index known as Sensex. The word comes from the words 'Sensitive' and 'Index,' and is basically a portmanteau of the two. BSE 30 and S&P BSE SENSEX are two other names of this index. Sensex constitutes the top 30 financially flourishing and well-established companies from the ones listed on BSE. These companies typically represent diverse industrial sectors of the country's economy to ensure a holistic calculation. Usually, these are the companies that have the largest and most actively traded stocks. SENSEX is broadly reported through both print and electronic media in national as well as international markets. The scientifically designed indexing system is based on globally accepted construction and review methodologies. It is being calculated on the basis of a free-float market capitalization methodology since September 2003.