Tata motors stock fundamentals

The stock fundamentals of Tata Motors (TM) indicate a stable financial position with strong profitability and operational efficiency. Here's a detailed analysis:

1. Return on Equity (ROE): The ROE as of March 31, 2025, is 3.81%. This is a moderate figure, suggesting that the company is generating returns on its shareholders' equity, although it is not at the higher end of the spectrum.

2. Profit Margin: The net profit margin as of March 31, 2025, is 11.52%. This is a healthy figure, indicating that the company is retaining a significant portion of its revenue as net profit.
3. Earnings Per Share (EPS): The EPS as of March 31, 2025, is $0.62. This is a basic measure of the company's profitability by dividing its net earnings by the number of outstanding shares.
4. Price-to-Earnings (P/E) Ratio: The P/E ratio as of October 4, 2024, is 7.83. This is a relatively low figure, suggesting that the stock is trading at a reasonable valuation compared to its earnings. Investors may find this attractive, especially if they believe the company's earnings growth will continue.
5. Free Cash Flow: The free cash flow as of March 31, 2025, is -$14.6 billion. A negative free cash flow indicates that the company is generating less cash than it is paying out in dividends and other expenses. However, it is important to note that the company's negative free cash flow is accompanied by a high net profit margin, suggesting that the company may be investing heavily in growth opportunities or managing its cash flow effectively to sustain its profitability.

In conclusion, the stock fundamentals of Tata Motors suggest a company with a stable financial position, strong profitability, and operational efficiency. The moderate ROE and low P/E ratio are positive indicators, while the negative free cash flow is a concern that may require further investigation into the company's cash management strategies and investment plans. Investors should consider these factors alongside the company's strategic positioning and growth prospects before making investment decisions.