SUMMARY

The automobile industry, one of the core sectors, has

undergone metamorphosis with the advent of new business
and manufacturing practices in the light of liberalization
and globalization. The sector seems to be optimistic of
posting strong sales in the couple of
years in the view of a reasonable surge in demand. The
Indian automobile market is gearing towards international
standards to meet the needs of the global automobile
giants and become a global hub.
A detailed analysis of Automobile industry has been
covered in respect of past growth and performance. Under
this project to better understand the Industry I have used
Fundamental tools to make it more authentic and
meaningful.
An economy-industry-company (E.I.C) approach has been
followed under Fundamental Analysis which covers effect of
Recession, the impact of inflation, FDI’s, Export, and GDP
etc. on Automobile Industry. The Industry Analysis has been
done with the help of SWOT analysis and industry life cycle.
For Company Analysis as a part of Fundamental tool we
have undergone with the comparative analysis of TATA
Motors the leading company and Maruti Suzuki along with
the help of ratio analysis. The fundamental aspect consists
of financial and Non-Financial analysis of these companies.
At the end conclusion and recommendations have been
specified so as to make the project work more meaningful
and purposeful.
 INTRODUCTION OF TOPIC

Fundamental analysis of a business involves analyzing its

financial statements and health, its management and
competitive advantages, and its competitors and markets.
When applied to futures and forex, it focuses on the overall
state of the economy, interest rates, production, earnings,
and management. When analyzing a stock, futures contract,
or currency using fundamental analysis there are two basic
approaches one can use; bottom up analysis and top down
analysis.[1] The term is used to distinguish such analysis from
other types of investment analysis, such as quantitative
analysis and technical analysis.

Fundamental analysis is performed on historical and present

data, but with the goal of making financial forecasts. There
are several possible objectives:

• to conduct a company stock valuation and predict its

probable price evolution,

• to make a projection on its business performance,

• to evaluate its management and make internal

business decisions,

• to calculate its credit risk.

Use by different portfolio styles

Investors may use fundamental analysis within different

portfolio management styles.

• Buy and hold investors believe that latching onto good

businesses allows the investor's asset to grow with the
business. Fundamental analysis lets them find 'good'
companies, so they lower their risk and probability of
wipe-out.

• Managers may use fundamental analysis to correctly

value 'good' and 'bad' companies. Eventually 'bad'
companies' stock goes up and down, creating
opportunities for profits.

• Managers may also consider the economic cycle in

determining whether conditions are 'right' to buy
fundamentally suitable companies.

• Contrarian investors distinguish "in the short run, the

market is a voting machine, not a weighing machine".[2]
Fundamental analysis allows you to make your own
decision on value, and ignore the market.

• Value investors restrict their attention to under-

valued companies, believing that 'it's hard to fall out of
a ditch'. The value comes from fundamental analysis.
 • Managers may use fundamental analysis to determine
future growth rates for buying high priced growth
stocks.

• Managers may also include fundamental factors along

with technical factors into computer models
(quantitative analysis).

No industry or company can exist in isolation and so

there are external factors which determine to an
extent growth of a company and so fundamental
analysis is a method of forecasting the future price
movements based on economic, political,
environmental and other factors and statistics that
effects the basic supply demand chain.
Some of the factors which can effect Analysis are.

• External factors

1. Political condition

2. Foreign Exchange

3. Government Policies in general

4. Government Policies pertaining to the sector

5. Inflation

6. Interest Rates

7. Taxation
 • Internal Factors

1. The Management

2. How a company is perceived by its competitors?

3. Is market leader in its products or in its segment

4. Company Policies

5. Employee / Labour Relations

6. Where the company is located and where its

factories are?

7. Financial Statements like Cash Flow / Balance

sheets

Fundamental analyst provides a details overview of changes

in price of currencies on the basis of political and economical
concepts and issues. Interest rates, supply and demands,
foreign investments, trade balance, and political and
economical stability etc. are some factors which
fundamental analysts take into consideration. This provides
a picture of market movements and mainly studies the
elements which can affect the economy and on the basis of
these it forecast the price trends of currencies pairs. The
points on which this analysis is based are following-

Fundamental Economic Analysis- In economic analysis

the analyst determine the strength of economy in present
and future through Grass Domestic Products(GDP), foreign
investments, stock prices etc.
Interest Rate- Interest rates effect the economic growth. If
interest rates will raise then the price of currency will move
up due to more foreign investments.

Commodity Price Analysis- Price of commodities

determines the economic growth of the country. Therefore
price of commodities like gold, silver, gas, and oil etc. are
important points of consideration here.

Besides these another points which are also considered in

fundamental analysis are stock market and currency
exchange rates analysis etc. In present financial scenario
forex markets are being changes frequently so any forex
traders can't avoid this analysis because it forecast the
overall economic condition on which price of currencies
depends. Without fundamental analysis, it is very difficult for
any forex investor to take a right forex trading judgments.

Why fundamental analysis works

Company profits drive stock prices. With fundamental

analysis we recognize that a "stock" is simply a
representation of ownership in a company. The company is
the cause of the stock price movement. And the stock price
movement is the effect of changes within the company.

How fundamental analysis works

Firstly, we need to know what fundamental factors have the

strongest correlating effect on a company’s performance
(i.e. profitability). This will differ from one company to the
next depending on the size of the company and the industry
it operates in. But generally speaking, we concentrate on the
factors affecting a company’s profitability and factors
relating to the company’s financial strength.

Once we know what to look for we can perform a search of

all stocks in the market to see which stocks meet our
criteria. The tool we use for this purpose is the stock
screener

Our stock screening returns a list of companies that match

our screening criteria. Then we can perform in-depth
analysis on the candidates displaying the best potential

Advantages of fundamental analysis

A fundamental analysis strategy allows you to sleep at night.

You can be confident knowing that you’ve completed your
due diligence. You’ve analyzed the company from differing
perspectives. You’ve used both logic and intuition to make
your buy decision (buy, sell, or hold).

Anyone who has completed the Stock Market Tutorial here at

Stock Market College will know that I combine fundamental
analysis with some technical analysis to boost my returns.
Fundamental analysis on its own is effective, but when
combined with stock chart analysis, you increase your
chances of success.

I find it useful to look at a company’s stock price trends

together with the fundamental analysis trends. This gives
you an idea of what factors have affected stock price
increases in the past.

Disadvantages of fundamental analysis

I don’t believe that a fundamental analysis strategy itself has

any inherent disadvantages, but there are some things that
investors need to be aware of when performing this analysis.

Be conscious of:

• accounting policies and assumptions can lead the

unwary investor to false conclusions. The solution is to
follow a structured analysis procedure and to be alert.
Knowing what to look for is the key.

• "off balance sheet" items. These are assets or some

type of liability that is not reported on the balance
sheet. They are usually mentioned in the "notes" to the
financial statements (at the back of the annual report)

• the timing of financial information

 Company profile

Tata Motors Limited is India's largest automobile company,

with consolidated revenues of Rs. 92,519 crores (USD 20
billion) in 2009-10. It is the leader in commercial vehicles in
each segment, and among the top three in passenger
vehicles with winning products in the compact, midsize car
and utility vehicle segments. The company is the world's
fourth largest truck manufacturer, and the world's second
largest bus manufacturer.

The company's 24,000 employees are guided by the vision

to be "best in the manner in which we operate, best in the
products we deliver, and best in our value system and
ethics."

Established in 1945, Tata Motors' presence indeed cuts

across the length and breadth of India. Over 5.9 million
Tata vehicles ply on Indian roads, since the first rolled out
in 1954. The company's manufacturing base in India is
spread across Jamshedpur (Jharkhand), Pune (Maharashtra),
Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and
Dharwad (Karnataka). Following a strategic alliance with
Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat powertrains. The
company is establishing a new plant at Sanand (Gujarat).
The company's dealership, sales, services and spare parts
network comprises over 3500 touch points; Tata Motors
also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering

sector to be listed in the New York Stock Exchange
(September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands
that was acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these
products to several international markets. Today two-thirds
of heavy commercial vehicle exports out of South Korea are
from Tata Daewoo. In 2005, Tata Motors acquired a 21%
stake in Hispano Carrocera, a reputed Spanish bus and
coach manufacturer, and subsequently the remaining stake
in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with
the Brazil-based Marcopolo, a global leader in body-building
for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. In 2006,
Tata Motors entered into joint venture with Thonburi
Automotive Assembly Plant Company of Thailand to
manufacture and market the company's pickup vehicles in
Thailand. The new plant of Tata Motors (Thailand) has
begun production of the Xenon pickup truck, with the
Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint,

established through exports since 1961. The company's
commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle
East, South East Asia, South Asia and South America. It has
franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia, Senegal and South Africa.

The foundation of the company's growth over the last 50

years is a deep understanding of economic stimuli and
customer needs, and the ability to translate them into
customer-desired offerings through leading edge R&D. With
over 3,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has
enabled pioneering technologies and products. The
company today has R&D centres in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Spain, and
the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's
first Sports Utility Vehicle and, in 1998, the Tata Indica,
India's first fully indigenous passenger car. Within two years
of launch, Tata Indica became India's largest selling car in
its segment. In 2005, Tata Motors created a new segment
by launching the Tata Ace, India's first indigenously
developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the

Tata Nano, which India and the world have been looking
forward to. The Tata Nano has been subsequently launched,
as planned, in India in March 2009. A development, which
signifies a first for the global automobile industry, the Nano
brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced
at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger

compartment with generous leg space and head room. It
can comfortably seat four persons. Its mono-volume design
will set a new benchmark among small cars. Its safety
performance exceeds regulatory requirements in India. Its
tailpipe emission performance too exceeds regulatory
requirements. In terms of overall pollutants, it has a lower
pollution level than two-wheelers being manufactured in
India today. The lean design strategy has helped minimise
weight, which helps maximise performance per unit of
energy consumed and delivers high fuel efficiency. The high
fuel efficiency also ensures that the car has low carbon
dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon
footprint.

In May 2009, Tata Motors introduced ushered in a new era

in the Indian automobile industry, in keeping with its
pioneering tradition, by unveiling its new range of world
standard trucks called Prima. In their power, speed,
carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in
the world in performance at a lower life-cycle cost.

Tata Motors is equally focussed on environment-friendly

technologies in emissions and alternative fuels. It has
developed electric and hybrid vehicles both for personal
and public transportation. It has also been implementing
several environment-friendly technologies in manufacturing
processes, significantly enhancing resource conservation.

Through its subsidiaries, the company is engaged in

engineering and automotive solutions, construction
equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools
and factory automation solutions, high-precision tooling and
plastic and electronic components for automotive and
computer applications, and automotive retailing and service
operations.

Tata Motors is committed to improving the quality of life of

communities by working on four thrust areas –
employability, education, health and environment. The
activities touch the lives of more than a million citizens. The
company's support on education and employability is
focused on youth and women. They range from schools to
technical education institutes to actual facilitation of
income generation. In health, our intervention is in both
preventive and curative health care. The goal of
environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last
but not the least, by introducing appropriate technologies in
our vehicles and operations for constantly enhancing
environment care.

With the foundation of its rich heritage, Tata Motors today

is etching a refulgent future.

Milestones

It has been a long and accelerated journey for Tata Motors,

India's leading automobile manufacturer. Some significant
milestones in the company's journey towards excellence
and leadership.
194 • Tata Engineering and Locomotive Co. Ltd. was
5 established to manufacture locomotives and
other engineering products.

194 • Steam road roller introduced in collaboration

8 with Marshall Sons (UK).

195 • Collaboration with Daimler Benz AG, West

4 Germany, for manufacture of medium
commercial vehicles. The first vehicle rolled out
within 6 months of the contract.

195 • Research and Development Centre set up at

9 Jamshedpur.

196 • Exports begin with the first truck being shipped

1 to Ceylon, now Sri Lanka.

196 • Setting up of the Engineering Research Centre at

6 Pune to provide impetus to automobile Research
and Development.

197 • Introduction of DI engines.

1

197 • First commercial vehicle manufactured in Pune.

7
198 • Manufacture of Heavy Commercial Vehicle
3 commences.

198 • First hydraulic excavator produced with Hitachi

5 collaboration.

198 • Production of first light commercial vehicle, Tata

6 407, indigenously designed, followed by Tata
608.

198 • Introduction of the Tatamobile 206 - 3rd LCV

9 model.

199 • Launch of the 1st indigenous passenger car Tata

1 Sierra.

• TAC 20 crane produced.

• One millionth vehicle rolled out.

199 • Launch of the Tata Estate.

2

199 • Joint venture agreement signed with Cummins

3 Engine Co. Inc. for the manufacture of high
horsepower and emission friendly diesel engines.

199 • Launch of Tata Sumo - the multi utility vehicle.

4 • Launch of LPT 709 - a full forward control, light
 commercial vehicle.

• Joint venture agreement signed with M/s Daimler

- Benz / Mercedes - Benz for manufacture of
Mercedes Benz passenger cars in India.

• Joint venture agreement signed with Tata Holset

Ltd., UK for manufacturing turbochargers to be
used on Cummins engines.

199 • Mercedes Benz car E220 launched.

5

199 • Tata Sumo deluxe launched.

6

199 • Tata Sierra Turbo launched.

7 • 100,000th Tata Sumo rolled out.

199 • Tata Safari - India's first sports utility vehicle

8 launched.

• 2 millionth vehicle rolled out.

• Indica, India's first fully indigenous passenger

car launched.

199 • 115,000 bookings for Indica registered against

9 full payment within a week.

• Commercial production of Indica commences in

 full swing.

200 • First consignment of 160 Indicas shipped to

0 Malta.

• Indica with Bharat Stage 2 (Euro II) compliant

diesel engine launched.

• Utility vehicles with Bharat 2 (Euro II) compliant

engine launched.

• Indica 2000 (Euro II) with multi point fuel

injection petrol engine launched.

• Launch of CNG buses.

• Launch of 1109 vehicle - Intermediate

commercial vehicle.

200 • Indica V2 launched - 2nd generation Indica.

1 • 100,000th Indica wheeled out.

• Launch of CNG Indica.

• Launch of the Tata Safari EX

• Indica V2 becomes India's number one car in its

segment.

• Exits joint venture with Daimler Chrysler.

200 • Unveiling of the Tata Sedan at Auto Expo 2002.

2 • Petrol version of Indica V2 launched.
 • Launch of the EX series in Commercial vehicles.

• Launch of the Tata 207 DI.

• 2,00,000th Indica rolled out.

• 5,00,000th passenger vehicle rolled out.

• Launch of the Tata Sumo'+' Series

• Launch of the Tata Indigo.

• Tata Engineering signed a product agreement

with MG Rover of the UK.

200 • Launch of the Tata Safari Limited Edition.

3 • The Tata Indigo Station Wagon unveiled at the
Geneva Motor Show.

• On 29th July, J. R. D. Tata's birth anniversary,

Tata Engineering becomes Tata Motors Limited.

• 3 millionth vehicle produced.

• First CityRover rolled out

• 135 PS Tata Safari EXi Petrol launched

• Tata SFC 407 EX Turbo launched

200 • Tata Motors unveils new product range at Auto

4 Expo '04.

• New Tata Indica V2 launched

• Tata Motors and Daewoo Commercial Vehicle Co.

 Ltd. sign investment agreement

• Indigo Advent unveiled at Geneva Motor Show

• Tata Motors completes acquisition of Daewoo

Commercial Vehicle Company

• Tata LPT 909 EX launched

• Tata Daewoo Commercial Vehicle Co. Ltd.

(TDCV) launches the heavy duty truck 'NOVUS' ,
in Korea

• Sumo Victa launched

• Indigo Marina launched

• Tata Motors lists on the NYSE

200 • Tata Motors rolls out the 500,000th Passenger

5 Car from its Car Plant Facility in Pune

• The Tata Xover unveiled at the 75th Geneva

Motor Show

• Branded buses and coaches - Starbus and

Globus - launched

• Tata Motors acquires 21% stake in Hispano

Carrocera SA, Spanish bus manufacturing
Company

• Tata Ace, India's first mini truck launched

• Tata Motors wins JRD QV award for business

 excellence.

• The power packed Safari Dicor is launched

• Introduction of Indigo SX series - luxury variant

of Tata Indigo

• Tata Motors launches Indica V2 Turbo Diesel.

• One millionth passenger car produced and sold

• Inauguration of new factory at Jamshedpur for

Novus

• Tata TL 4X4, India's first Sports Utility Truck

(SUT) is launched

• Launch of Tata Novus

• Launch of Novus range of medium trucks in

Korea, by Tata Daewoo Commercial
Vehicle Co. (TDCV)

200 • Tata Motors vehicle sales in India cross four

6 million mark

• Tata Motors unveils new long wheel base

premium Indigo & X-over concept at Auto Expo
2006

• Indica V2 Xeta launched

• Passenger Vehicle sales in India cross one-

million mark
 • Tata Motors and Marcopolo, Brazil, announce
joint venture to manufacture fully built buses &
coaches for India & markets abroad

• Tata Motors first plant for small car to come up

in West Bengal

• Tata Motors extends CNG options on its

hatchback and estate range

• TDCV develops South Korea's first LNG-Powered

Tractor- Trailer

• Tata Motors and Fiat Group announce three

additional cooperation agreements

• Tata Motors introduces a new Indigo range

200 • Construction of Small Car plant at Singur, West

7 Bengal, begins on January 21

• New 2007 Indica V2 range is launched

• Tata Motors launches the longwheel base Indigo

XL, India's first stretch limousine

• Common rail diesel (DICOR) engine extended to

Indigo sedan and estate range

• Tata Motors and Thonburi Automotive Assembly

Plant Co. (Thonburi), announce formation of a
joint venture company in Thailand to
manufacture, assemble and market pickup
 trucks.

• Roll out of 100,000th Ace

• Tata-Fiat plant at Ranjangaon inaugurated

• Launch of a new Upgraded range of its entry

level utility vehicle offering, the Tata Spacio.

• CRM-DMS initiative crosses the 1000th location

milestone

• Launch of Magic, a comfortable, safe, four-

wheeler public transportation mode, developed
on the Ace platform

• Launch of Winger, India’s only maxi-van

• Fiat Group and Tata Motors announce

establishment of Joint Venture in India

• Launch of the Sumo Victa Turbo DI, the new

upgraded range of its entry-level utility vehicle,
the Sumo Spacio

• Tata Motors launches Indica V2 Turbo with dual

airbags and ABS

• Launch of new Safari DICOR 2.2 VTT range,

powered by a new 2.2 L Direct Injection Common
Rail (DICOR) engine.

• Rollout of the one millionth passenger car off the

Indica platform.
200 • Ace plant at Pantnagar (Uttarakhand) begins
8 production.

• Indica Vista – the new generation Indica, is

launched.

• Tata Motors' new plant for Nano to come up in

Gujarat.

• Latest common rail diesel offering- the Indica V2

DICOR, launched.

• Indigo CS (Compact Sedan), world’s first sub

four-metre sedan, launched.

• Launch of the new Sumo -- Sumo Grande, which

combines the looks of an SUV with the comforts
of a family car.

• Tata Motors unveils its People's Car, Nano, at the

ninth Auto Expo.

• Xenon, 1-tonne pick-up truck, launched in

Thailand.

• Tata Motors signs definitive agreement with Ford

Motor Company to purchase Jaguar and Land
Rover.

• Tata Motors completes acquisition of Jaguar Land

Rover.

• Tata Motors introduces new Super Milo range of

 buses.

• Tata Motors is Official Vehicle Provider to Youth

Baton Relay for The III Commonwealth Youth
Games Pune 2008.

• Indica Vista – the second generation Indica, is

launched.

• Tata Motors launches passenger cars and the

new pick-up in D.R. Congo.

200 • Tata Marcopolo Motors, Dharwad plant beings

9 production

• Tata Motors launches Nano - The People's Car

• Introduction of New world standard truck range

• Launch of premium luxury vehicles - Jaguar XF,

XFR and XKR and Land Rover Discovery 3, Range
Rover Sport and Range Rover from Jaguar and
Land Rover in India

• Tata Nano wins the Indian Car of the Year

(ICOTY) Award

• Tata Motors launches the Sumo Grande MK II

• Tata Motors begins distribution of Prima World

truck

• Tata Motors acquires remaining 79% in Hispano

 Carrocera.

• Tata Motors launches the next generation all-

new Indigo MANZA.

• FREELANDER 2 launched in India.

• Tata Motors introduces the all new Tata 407

Pickup, Tata Super Ace and Tata Ace EX.

• First Jaguar Land Rover showroom opens in

India.

• Ravi Kant to become Non-executive Vice-

Chairman of Tata Motors on retirement,
P.M. Telang to become Managing Director – India
Operations.

• Tata Nano draws over 2.03 lakh bookings

201 • Tata Ace becomes India's first 1-lakh brand in

0 goods commercial vehicles.

• Appointment of Mr. Carl-Peter Forster as

Managing Director of Tata Motors.

• Jaguar Land Rover announces opening of its

Dealership in New Delhi

• Tata Motors to construct heavy truck plant in

Myanmar under Government of India’s Line of
Credit.
 • Tata Motors declared as the Commercial Vehicle
Maker of the Year.

• Tata Motors Passenger Car Division launches

‘Tata Motors Service Edge’ for leading edge
customer service.

• Tata Motors displays Tata Nano EV at the 80th

Geneva Motor Show.

• Chief Minister of Punjab inaugurates Tata Motors

supported State Institute of Automotive and
Driving Skills.

• Jaguar Land Rover announces Dr Ralf Speth as

Chief Executive Officer.

• Tata Motors appoints Mr. Carl-Peter Forster as

Group CEO.

• Tata Motors Group displays the widest range of

products and environment-friendly technologies
at Auto Expo 2010.

• Tata Motors launches Magic Iris

• On 26th April 2010, Tata Motors sold its 4

millionth Commercial Vehicle.

Manufacturing
Tata Motors owes its leading position in the Indian
automobile industry to its strong focus on indigenisation.
This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every
stage of product evolution-design, development,
manufacturing, assembly and quality control, is carried out
meticulously. Our manufacturing plants are situated at
Jamshedpur in the East, Pune in the West and Lucknow in
the North.

Jamshedpur:
Established in 1945, the Jamshedpur unit was the
company's first unit and is spread over an area of 822
acres. It consists of 4 major divisions - Truck Factory,
Engine Factory, Cab & Cowl Factories... The uniqueness of
the Factory lies in its possession of

• Advanced facilities for manufacturing long

members comprising of a set-up of 5000 Tones
Hydraulic press line, cut-to-length line for strip
preparation purchased from M/s Kohler of Germany
and a Camber Correction line.

• Facility for hot forming of axle halves with a 3000

tone press and heating furnace.

• Flexibility in manufacturing frames with an off line

Proto-typing facility.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri
(800 acres) and Chinchwad (130 acres). It was established
in 1966 and has a Production Engineering Division, which
has one of the most versatile tool making facilities in the
Indian sub-continent. Industry experts rate the fully
automated Foundries at Chinchwad and Maval among the
best, worldwide. The Iron Foundry at Chinchwad produced
37,000 Tons of high precision castings in 2006-07 while the
Iron Foundry at Maval produced 14000 Tons of spheroidal
Iron castings in 2006-07. These include Cylinder Blocks,
Cylinder Heads, Gear Box Housing, etc. To dispense with
the need for outsourcing, an Aluminium Foundry with an
annual capacity of 3,300 Tonnes has been established.

Lucknow:
Tata Motors Lucknow is one of the youngest production
facilities among all the Tata Motors locations and was
established in 1992 to meet the demand for Commercial
Vehicles in the Indian market...

Uttarakhand
The company has set up a plant for its mini-truck Ace and
the passenger carrier Magic (based on the Ace platform) at
Pantnagar in Uttarakhand. The plant began...
Sanand
Tata Motors’ plant for the Tata Nano at Sanand, in
Ahmedabad district of Gujarat, marks the culmination of the
company’s goal of making the Tata Nano available to
hundreds of thousands of families, desirous of the car a safe,
affordable and environmental friendly mode of transport.
The capacity of the plant, to begin with, will be 250,000 cars
per year to be achieved in phases, and with some balancing
is expandable up to 350,000 cars per year. Provision for
further capacity expansion has also been incorporated in this
location
COMPANY PRODUCT

Tata Sumo is a multi-utility vehicle produced by India's Tata

Motors. The vehicle was released in
1997 and was one of the first
passenger vehicles designed in India.
The Sumo received an extensive
facelift in 2004 and was renamed the
Sumo Victa in face of competition from relatively modern
competitors. The Sumo is said to have got its name from Mr
Sumant Moolgaonkar, (Su-Mo) who was instrumental in a
anumber of revolutionary changes in TELCO and bringing
about significant progress.

The Sumo is based on Tata Motors' 207 pick-up platform and

thus, shared most of its other mechanics with other Tata
vehicles like the Tata Sierra, Tata Estate, Tata Tatamobile,
Tata Telcoline (TL) and Tata 207DI. In 1994, the Tata Sumo
originally came with a 1948cc normally aspirated diesel
engine. Later, an option of a turbocharged version of the
same engine was also offered.

Prior to the Sumo, the Indian market had stagnated, where

the most modern vehicles in the same class were from
Mahindra and Mahindra, primarily derived from the original
Willys Jeep models. Upon release, Tata Sumo quickly
captured a major segment of the utility automobile market in
India.

Spacio

A no-frills version called the Tata Spacio is also available. It

is equipped with a 3000 cc DI diesel engine sourced from the
popular LCV Tata 407. The prominent visual difference was
the presence of round headlamps instead of the rectangular
lamps. A soft top version of the Spacio called the Spacio ST
was also introduced for the rural markets. After the facelift,
the Spacio inherited the styling elements of the older Tata
Sumo. In 2007, the Victa became available with the Spacio's
3000 cc engine. And in terms of styling, the positioning of
the spare wheel was changed from the rear tailgate to the
underbody of the vehicle. This model comes in 8 and 10
seater variants and is very much popular with private
transporters & contract taxi vendors because of its lower
cost.

Sumo Victa

The new Sumo Victa released in 2004 featured power

windows, power steering, dual AC, central locking, clear lens
multi reflector head lamps, crystal finish tail lamp cluster,
anti glare ORVMS with electronic control, remote keyless
entry, tachometers, LCD monitors, voice warnings, multiple
trip odometers are all either standard or available options.
The Tata Nano is an inexpensive, rear-engined, four-
passenger city car built by the Indian
company Tata Motors and is aimed
primarily at the Indian domestic market.

Tata Motors began selling its "one-lakh

car" in March, 2009.[5] The cheapest car in the world today,[6]
though the price continues to rise[7] due to increasing
material costs,[8] it is an exemplary example of Gandhian
engineering, a concept involving deep frugality and a
willingness to challenge conventional wisdom.[9]

In 2008 the Financial Times reported: "if ever there were a

symbol of India’s ambitions to become a modern nation, it
would surely be the Nano, the tiny car with the even tinier
price-tag. A triumph of homegrown engineering, the $2,200
(€1,490, £1,186) Nano encapsulates the dream of millions of
Indians groping for a shot at urban prosperity."[10]
"Homegrown engineering" is a relative term here as much of
the systems and parts used in the Nano may not have been
developed or produced in India.[11]

While the car has sold over 200K units, disappointing

November, 2010, sales figures have made some rethink
current opinion that selling no frills products to the poor will
be a winning strategy in the future.[7]
The nickname, "one-lakh car" is due to the Nano's low price
point, near 100,000 (one lakh rupees).

SWOT Analysis - Tata Motors Limited

The company began in 1945 and has produced more than 4

million vehicles. Tata Motors Limited is the largest car
producer in India. It manufactures commercial and
passenger vehicles, and employs in excess of 23,000 people.
This SWOT analysis is about Tata Motors.

Strengths

• The internationalisation strategy so far has been to

keep local managers in new acquisitions, and to only
transplant a couple of senior managers from India into
the new market. The benefit is that Tata has been able
to exchange expertise. For example after the Daewoo
acquisition the Indian company leaned work discipline
and how to get the final product 'right first time.'

• The company has a strategy in place for the next stage

of its expansion. Not only is it focusing upon new
products and acquisitions, but it also has a programme
of intensive management development in place in order
to establish its leaders for tomorrow.

• The company has had a successful alliance with Italian

mass producer Fiat since 2006. This has enhanced the
product portfolio for Tata and Fiat in terms of
 production and knowledge exchange. For example, the
Fiat Palio Style was launched by Tata in 2007, and the
companies have an agreement to build a pick-up
targeted at Central and South America.

Weaknesses

• The company's passenger car products are based upon

3rd and 4th generation platforms, which put Tata
Motors Limited at a disadvantage with competing car
manufacturers.

• Despite buying the Jaguar and Land Rover brands (see

opportunities below); Tat has not got a foothold in the
luxury car segment in its domestic, Indian market. Is
the brand associated with commercial vehicles and low-
cost passenger cars to the extent that it has isolated
itself from lucrative segments in a more aspiring India?

• One weakness which is often not recognised is that in

English the word 'tat' means rubbish. Would the brand
sensitive British consumer ever buy into such a brand?
Maybe not, but they would buy into Fiat, Jaguar and
Land Rover (see opportunities and strengths).

Opportunities

• In the summer of 2008 Tata Motor's announced that it

had successfully purchased the Land Rover and Jaguar
brands from Ford Motors for UK £2.3 million. Two of the
World's luxury car brand have been added to its
 portfolio of brands, and will undoubtedly off the
company the chance to market vehicles in the luxury
segments.

• Tata Motors Limited acquired Daewoo Motor's

Commercial vehicle business in 2004 for around USD
$16 million.

• Nano is the cheapest car in the World - retailing at little

more than a motorbike. Whilst the World is getting
ready for greener alternatives to gas-guzzlers, is the
Nano the answer in terms of concept or brand?
Incidentally, the new Land Rover and Jaguar models will
cost up to 85 times more than a standard Nano!

• The new global track platform is about to be launched

from its Korean (previously Daewoo) plant. Again, at a
time when the World is looking for environmentally
friendly transport alternatives, is now the right time to
move into this segment? The answer to this question
(and the one above) is that new and emerging
industrial nations such as India, South Korea and China
will have a thirst for low-cost passenger and
commercial vehicles. These are the opportunities.
However the company has put in place a very proactive
Corporate Social Responsibility (CSR) committee to
address potential strategies that will make is operations
more sustainable.
 • The range of Super Milo fuel efficient buses are
powered by super-efficient, eco-friendly engines. The
bus has optional organic clutch with booster assist and
better air intakes that will reduce fuel consumption by
up to 10%.

Threats

• Other competing car manufacturers have been in the

passenger car business for 40, 50 or more years.
Therefore Tata Motors Limited has to catch up in terms
of quality and lean production.

• Sustainability and environmentalism could mean extra

costs for this low-cost producer. This could impact its
underpinning competitive advantage. Obviously, as
Tata globalises and buys into other brands this problem
could be alleviated.

• Since the company has focused upon the commercial

and small vehicle segments, it has left itself open to
competition from overseas companies for the emerging
Indian luxury segments. For example ICICI bank and
DaimlerChrysler have invested in a new Pune-based
plant which will build 5000 new Mercedes-Benz per
annum. Other players developing luxury cars targeted
at the Indian market include Ford, Honda and Toyota. In
fact the entire Indian market has become a target for
 other global competitors including Maruti Udyog,
General Motors, Ford and others.

• Rising prices in the global economy could pose a threat

to Tata Motors Limited on a couple of fronts. The price
of steel and aluminium is increasing putting pressure on
the costs of production. Many of Tata's products run on
Diesel fuel which is becoming expensive globally and
within its traditional home market.
TATA PHOTO GALLERY

Tata manza

Tata indica vista

Tata indica
BALANCE SHEET

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share
Capital 382.87 385.41 385.54 514.05 570.6

Equity Share
Capital 382.87 385.41 385.54 514.05 570.6

5,127.8 11,855.1 14,394.8

Reserves 1 6,458.39 7,428.45 5 7

Revaluation
Reserves 26.39 25.95 25.51 25.07 0

5,537.0 12,394.2 14,965.4

Networth 7 6,869.75 7,839.50 7 7

Secured
Loans 822.76 2,022.04 2,461.99 5,251.65 7,742.60

Unsecured 2,114.0
Loans 8 1,987.10 3,818.53 7,913.91 8,883.31

2,936.8 13,165.5 16,625.9

Total Debt 4 4,009.14 6,280.52 6 1

Total 8,473.9 10,878.8 14,120.0 25,559.8 31,591.3

Liabilities 1 9 2 3 8

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
 12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

7,971.5 10,830.8 13,905.1 18,416.8

Gross Block 5 8,775.80 3 7 1

Less: Accum. 4,401.5

Depreciation 1 4,894.54 5,443.52 6,259.90 7,212.92

3,570.0 11,203.8
Net Block 4 3,881.26 5,387.31 7,645.27 9

Capital Work
in Progress 951.19 2,513.32 5,064.96 6,954.04 5,232.15

2,015.1 12,968.1 22,336.9

Investments 5 2,477.00 4,910.27 3 0

2,012.2
Inventories 4 2,500.95 2,421.83 2,229.81 2,935.59

Sundry
Debtors 715.78 782.18 1,130.73 1,555.20 2,391.92

Cash and
Bank Balance 327.66 535.78 750.14 638.17 1,753.26

Total Current 3,055.6

Assets 8 3,818.91 4,302.70 4,423.18 7,080.77

Loans and 5,964.6

Advances 1 6,208.53 4,831.36 5,909.75 4,618.90

Fixed
Deposits 791.77 290.98 1,647.17 503.65 0
Total CA,
Loans & 9,812.0 10,318.4 10,781.2 10,836.5 11,699.6
Advances 6 2 3 8 7

Deffered
Credit 0 0 0 0 0

Current 6,673.6 10,040.3 10,968.9 16,117.8

Liabilities 1 6,956.88 7 5 0

1,215.0
Provisions 4 1,364.32 1,989.43 1,877.26 2,763.43

Total CL & 7,888.6 12,029.8 12,846.2 18,881.2

Provisions 5 8,321.20 0 1 3

Net Current 1,923.4

Assets 1 1,997.22 -1,248.57 -2,009.63 -7,181.56

Miscellaneou
s Expenses 14.12 10.09 6.05 2.02 0

8,473.9 10,878.8 14,120.0 25,559.8 31,591.3

Total Assets 1 9 2 3 8
 Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Income 12 mths 12 mths 12 mths 12 mths 12 mths

Sales
Turnover 23,490.55 31,089.69 33,123.54 28,538.20 38,364.10

Excise Duty 3,401.92 4,425.44 4,355.63 2,877.53 2,800.10

Net Sales 20,088.63 26,664.25 28,767.91 25,660.67 35,564.00

Other Income 852.41 1,114.38 734.17 921.29 933

Stock
Adjustments 256.91 349.68 -40.48 -238.04 606.63

Total Income 21,197.95 28,128.31 29,461.60 26,343.92 37,103.63

Expenditure

Raw Materials 14,633.02 19,879.56 20,891.33 18,801.37 25,366.12

Power & Fuel
Cost 258.51 327.41 325.19 304.94 362.62
Employee
Cost 1,143.13 1,367.83 1,544.57 1,551.39 1,836.13
Other
Manufacturin
g Expenses 671.31 872.95 904.95 866.65 76.7
Selling and
Admin
Expenses 1,061.07 1,505.23 2,197.49 1,652.31 81.72
Miscellaneous
Expenses 740.99 1,051.49 964.78 1,438.89 5,009.60
Preoperative
Exp
Capitalised -308.85 -577.05 -1,131.40 -916.02 -740.54
Total
Expenses 18,199.18 24,427.42 25,696.91 23,699.53 31,992.35
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Operating
Profit 12 mths 12 mths 12 mths 12 mths 12 mths

2,146.36 2,586.51 3,030.52 1,723.10 4,178.28

PBDIT 2,998.77 3,700.89 3,764.69 2,644.39 5,111.28
Interest 350.24 455.75 471.56 704.92 1,103.84
PBDT 2,648.53 3,245.14 3,293.13 1,939.47 4,007.44
Depreciation 520.94 586.29 652.31 874.54 1,033.87
Other Written
Off 73.78 85.02 64.35 51.17 144.03
Profit Before
Tax 2,053.81 2,573.83 2,576.47 1,013.76 2,829.54
Extra-
ordinary items 0 -0.07 0 15.29 0
PBT (Post
Extra-ord
Items) 2,053.81 2,573.76 2,576.47 1,029.05 2,829.54
Tax 524.93 660.37 547.55 12.5 589.46
Reported Net
Profit 1,528.88 1,913.46 2,028.92 1,001.26 2,240.08
Total Value
Addition 3,566.16 4,547.86 4,805.58 4,898.16 6,626.23
Preference
Dividend 0 0 0 0 0
Equity
Dividend 497.94 578.07 578.43 311.61 859.05
Corporate
Dividend Tax 69.84 98.25 81.25 34.09 132.89
Per share data (annualised)
Shares in
issue (lakhs) 3,828.34 3,853.74 3,855.04 5,140.08 5,705.58
Earning Per
Share (Rs) 39.94 49.65 52.63 19.48 39.26
Equity
Dividend (%) 130 150 150 60 150
Book Value
(Rs) 143.94 177.59 202.7 240.64 262.3
 SALES AND OPERATING GRAPH

40,000.00
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales Turnover Operating Profit

CASH FLOW

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

1528.8 1913.4 2028.9

Net Profit Before Tax 8 6 2 1001.26 2240.08

Net Cash From 2210.1 6174.5

Operating Activities -221.03 3 0 1295.02 6586.03

Net Cash (used in)/from - - -

2805.1 5721.8 10644.6 -
Investing Activities -1.06 0 6 7 11848.29

Net Cash (used in)/from 1132.4

Financing Activities -855.27 303.58 6 8104.70 5348.49

Net (decrease)/increase -
In Cash and Cash 1077.3 1585.1
Equivalents 6 -291.39 0 -1244.95 86.23

Opening Cash & Cash 2196.7 1118.1 806.21 2386.77 630.04

 Equivalents 9 5

Closing Cash & Cash 1119.4 2391.3

Equivalents 3 826.76 1 1141.82 716.27

RATIO

Mar Mar
Mar '06 '07 '08 Mar '09 Mar '10

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 13.00 15.00 15.00 6.00 15.00

Operating Profit Per Share (Rs) 56.07 67.12 78.61 33.52 73.23

691.9
Net Operating Profit Per Share (Rs) 524.73 1 746.24 499.23 623.32

157.1
Free Reserves Per Share (Rs) 123.34 6 182.38 217.77 --

Bonus in Equity Capital 29.06 28.87 28.86 21.64 19.5

Profitability Ratios

Operating Profit Margin(%) 10.68 9.7 10.53 6.71 11.74

Profit Before Interest And Tax

Margin(%) 7.82 7.25 8.16 3.2 8.82

Gross Profit Margin(%) 12.21 11.19 8.26 3.3 8.84

Cash Profit Margin(%) 9.86 9.07 8.13 6.97 7.12

Adjusted Cash Margin(%) 9.41 8.55 8.13 6.97 7.12

Net Profit Margin(%) 7.35 6.94 6.96 3.77 6.28

Adjusted Net Profit Margin(%) 6.55 6.12 6.96 3.77 6.28

Return On Capital Employed(%) 26.47 25.82 18.96 6.41 9.66

Return On Net Worth(%) 27.74 27.96 25.98 8.09 14.96

Adjusted Return on Net Worth(%) 24.77 24.67 21.18 7.45 9.07

Return on Assets Excluding 177.3

Revaluations 9.34 3 202.54 240.6 262.3

Return on Assets Including

Revaluations 9.36 178 203.2 241.09 262.3

Return on Long Term Funds(%) 28.65 31.18 22.85 8.89 9.66

Liquidity And Solvency Ratios

Current Ratio 1.07 0.86 0.64 0.44 0.62

Quick Ratio 0.97 0.92 0.66 0.58 0.46

Debt Equity Ratio 0.53 0.59 0.8 1.06 1.11

Long Term Debt Equity Ratio 0.42 0.31 0.5 0.49 1.11

Debt Coverage Ratios

Interest Cover 7.62 7.19 6.28 2.43 2.77

Total Debt to Owners Fund 0.53 0.59 0.8 1.06 1.11

Financial Charges Coverage Ratio 8.08 7.62 7.19 3.64 3.83

Financial Charges Coverage Ratio

Post Tax 7.06 6.67 6.82 3.73 4.1

Management Efficiency Ratios

Inventory Turnover Ratio 10.32 11.02 14.44 13.47 13.07

Debtors Turnover Ratio 26.31 35.6 30.08 19.11 18.02

Investments Turnover Ratio 12.63 13.26 14.44 13.47 13.07

Fixed Assets Turnover Ratio 5 5.01 2.69 1.88 1.93

Total Assets Turnover Ratio 2.4 2.49 2.06 1.02 1.13

Asset Turnover Ratio 2.55 3.08 2.69 1.88 1.93

Average Raw Material Holding 19.88 17.53 15.08 20.9 --

Average Finished Goods Held 16.65 17.34 16.81 13.64 --

Number of Days In Working Capital 34.47 26.96 -15.62 -28.19 -72.7

Profit & Loss Account Ratios

Material Cost Composition 72.84 74.55 72.62 73.26 71.32

Imported Composition of Raw

Materials Consumed 4.64 3.88 4.6 5.82 5.94

Selling Distribution Cost Composition 3.78 4 4.09 4.77 --

Expenses as Composition of Total

Sales 11.87 10.18 9.88 9.49 8.56

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 37.13 35.34 32.51 34.52 44.28

Dividend Payout Ratio Cash Profit 26.73 26.16 24.02 17.94 29.02

Earning Retention Ratio 58.31 59.9 60.13 62.49 27

Cash Earning Retention Ratio 70.98 71.32 72.18 81.29 60.9

AdjustedCash Flow Times 1.5 1.7 2.65 7.13 6.55

Indian Stock Market Analysis
Technical Chart
COMMENTS ON THE FINANCIAL POSITION OF THE TATA
MOTORS WITH THE HELP OF RATIO ANALYSIS

A. LIQUIDITY RATIO

I) CURRENT RATIO = current assets/ current liabilities.

This ratio is analysed to test the solvency position of the

company. The Current ratio
reveals the firms ability to meet its current liabilities out of
current source of fund.
The standard ratio is 2: 1, but in practically the standard
ratio is assumed to be 1.5:1.
The company is having current ratio of 1.20:1, which means
that for every Re. 1 of
current liabilities, the company have Re. 1.2 of current
assets, which is satisfactory
position but the company should try to increase the current
ratio to at least 1.5:1.
2. ACID TEST RATIO = current assets – Inventories/ current
liabilities - bank O/D

This ratio is also used to know the solvency of the company.

This ratio reveals the

actual financial ability of the company to pay off its

immediate impending liabilities

The standard ratio is 1:1 but in practically it is accepted to

be 0.8:1. The company is
having 0.92:1 quick ratio which is quite satisfactory. Which
means that for every Re.1
of CL the company can pay immediately Re.0.92.

B. PROFITABILITY RATIO

GROSS PROFIT RATIO(GPR) = Gross profit / sales × 100

This ratio indicates the relationship between the gross profit

and the sales of the
company. this ratio gives the information about the
movement of stock and also
earning capacity of the company. The more the ratio ,
greater is the earning capacity
of the company. The company is having 09.35% of gross
profit ratio which is not so
satisfactory for the company as the standard ratio of gross
profit is 25% .The
Company should try to minimize its direct and operating cost
and side by side it
should put extra effort to increase its revenue by selling
more output in the market.

NET PROFIT RATIO (NPR) = Net profit / turnover × 100

This ratio indicates the ratio of net profit to net

sales/turnover. This ratio reveals the
amount of fund left for the proprietor of the company. Net
profit ratio is useful to
measure the operational efficiency of the management of
the company. The net profit
ratio is 06.14% , which is below standard .The standard ratio
is 15%, the company
should try to increase its net profit to increase the ratio.

RETURN ON INVESTMENT = Net profit /capital employed ×

100

Return on investment indicates the profit earning capacity

/profitability as compare to
capital employed by the company. In clear terms it indicates
the rate of return on the
capital employed by the company. The ROI is a very good
indicator of judging the
utilisation of resources and capital of the company .The
standard ratio is 20%,
whereas the company’s return on investment is
13.45%.There is no practical norm orstandard of this ratio. It
depends on the objective, efficiency and capacity of the
company. However, the company should try to maintain this
ratio at a level over and
above the standard Bank Interest Rate to cover the risk
involved in the business. The
Company should try to increase this ratio gradually.

OPERATING RATIO = cost of goods sold + operating

expenses /net sales × 100

This ratio shows the relationship between the operating cost

and net sales of the
company. The ratio indicates the managerial efficiency to
minimize the operating cost.
The lower the ratio, the greater is the management
efficiency. The company is having
80.5% operating ratio. The company should try to minimize
the ratio ,so that the
portion of profit can be increased.

C. LEVERAGE / SOLEVENCY RATIO

I) DEBT EQUITY RATIO = Long term debt / shareholders
equity

This ratio reveals the relation between the long term debt
and Proprietors’ fund of the
concern, it also shows the efficiency of the management in
financial planning. The
debt equity ratio is 81.40:100, which means that for every Rs
100 of the Proprietors’
fund, the long term debt stands to Rs 81.40.The standard
ratio in this case is 0.33 .this
means that for every Re. 1 of the proprietors fund, the long
term debt should be 0.33
paise. It is assumed that the position of the creditor is
uncomfortable if the ratio is
higher than this

II) PROPRIETARY RATIO = Shareholders Equity / Total Assets.

=Share capital + general reserve / fixed + current assets

This ratio explains the relation between the total assets and
the proprietary fund of the
company. This shows that how much proprietary fund is
engaged in the business
while financing the total assets of the company. Here the
company has engaged 40%
of the proprietary fund for financing its assets. This ratio also
shows that how much
the company is dependent on external equity while financing
its total assets. Here the
company is dependent on external equity to the extent of
60%.The company should
gradually try to decrease the ratio of dependent on the
external equity. This will in
turn increase the share of profit of the company.

D. ACTIVITY RATIO / TURNOVER RATIO

I) INVENTORY TURNOVER RATIO = Cost of goods sold /

average inventory

This ratio indicates the relation between the inventory and

sales of the company.
Which provide us the information about the velocity of stock
during the year. High
ratio is always desirable by the company; the high ratio
indicates a good position of
the company. The company’s inventory turnover ratio is
10.42 times, which means the
movement of stock is approximately 10.5 times in a year

II) FIXED ASSETS TURNOVER RATIO = Sales / Fixed Assets

 This ratio establish a relation with the fixed assets and sales
of the company. Which
indicates, how many times the fixed assets is utilised to
achieve the sales of the
company. Here the company is utilising 6.14 times of its
fixed assets to achieve the
sales of the company. The company should try to increase
this ratio, which will
increase the production and ultimately the sales of the
company.

TURNOVER RATIO = Sales / current assets = 33093.93 / 10383.78 = 3.2

times

Current assets turnover ratio = 3.2 times.

This ratio establish a relation between the current assets and

sales of the company
.This ratio indicates that how many times the current assets
in being utilised to
achieve the sales by the company. The current turnover
ratio of the company is 3.2
times, which means that the company is utilising 3.2 times
its current assets for
achieving its sales.
Price Data for Tata Motors on 11-01-2008

BSE NSE

Open Price Rs.702.92 Rs.729.04

High Price Rs.726.24 Rs.729.04

Low Price Rs.688.90 Rs.688.10

Close Price Rs.712.68 Rs.713.29

Volume 315977 1374280

Assuming that you bought this stock at the closing price on

11-01-2008 on the BSE, your gain today is 73.38%. If you
had bought on the NSE, your gain would be 73.38%.
 # Prices adjusted for bonus and stock splits, but not for
dividends.

Historic Prices of Tata Motors

BSE

NSE

3
1 2 1 mont 6 9 1

week week month h month month year

1282. 1267. 1275.8 1156.

Price 4 7 5 7 788.45 782.65 785.1

Gain / - - 56.72 57.88 57.39

Loss 3.65% 2.53% -3.15% 6.83% % % %

CONCLUSION
Fundamental analysis is a powerful tool for stock investors.
However, it is also easy to try to tackle too much analysis.
Many financial educators and analysts over complicate
fundamental analysis to create a mystique around their
proprietary methods and to create a "need" for their service.
With proper diversification the process of fundamental
analysis can be safely streamlined considerably

The good news is while fundamental analysis is not likely to

show you any "hidden" information it can help improve
returns by lowering volatility. Because extreme volatility
often happens to the downside, lowering this potential risk is
one of the most important things an investor can do.

Fundamental analysis will not perfectly predict the future of

any stock. This is true of all types of financial analysis,
however it will provide a very specific benefit of removing
some unknowns. For example, in the stock market some of
the most dangerous unknowns are those that surround a
stock or company that has yet to provide profits or has not
done so in a long time.

A stock like this is driven exclusively by trader expectations

about the future since the company has not proven that it
can perform in the past. Trader expectations are extremely
volatile and can lead to large amounts of concentrated risk.
Fundamental analysis can also help identify companies that
are operating at extremes. Too often those with unusually
high or low ROE numbers will also be very sensitive to the
market and can be quite volatile. As a general rule, I have
found that it is acceptable to look for stocks with an ROE
measure 10-40% greater than the average of their industry
group or sector.
Bibliography

Tata Motors' Official Website

Wiki - Tata Motors Ltd
Business Today - Pick and Choose
Business Today - Tata Motors to bring Jaguar, Land Rover to
India