Project on Fundamental & Technical Analysis

Submitted to: Prof. A.K. Agarwal Dean, MERI Submitted by: Sonu Kumar 110244

FUNDAMENTAL ANALYSIS
Economy analysis
Automobile industry contributes 4% of the national GDP and accounts for 5% of the industrial output in India. It is moreover, a major employment generator in the country. The Indian automobile industry provides employment to around 13 million people directly or indirectly at present, a number that is likely to double by 2016. Today also, around 65% economy of India is depending upon agriculture. While approximately 50 per cent of the working population is employed in the agricultural sector, agriculture only generates 15 per cent of GDP. India cannot continue to have 50 per cent of the working population in the agricultural sector. The liberalization policies of government have been one of the biggest factors behind the industry's rapid growth. The Indian automobile industry is now riding high on success, and the bright picture does tend to obscure the problems and challenges that lay on the track of its growth. Poor road conditions, heavy pollution and large scale traffic related accidents are serious impediments in the way of the industry's growth. However, steps are being initiated by the government to address these problems at various levels, and solutions are being worked out at a steady pace. The government reduced the excise duty on small cars to 8% from 12% in 2008 to boost demand in a depressed market. In February 2010, as the sector revived, finance ministry increased the tax to 10% INDUSTRY ANALYSIS Although the bulk of an automobile is virgin steel, petroleum-based products (plastics and vinyls) have come to represent an increasingly large percentage of automotive components. The light-weight materials derived from petroleum have helped to lighten some models by as much as thirty percent. Aluminium is used for the body. The car industry uses a tremendous number of materials to build cars, including iron, aluminum, plastic steel, glass, rubber, petroleum products, copper, and steel. Automobile Industries are categorised as follows 1. 2 wheeler 2. 3 wheeler 3. Passenger Vehicle 4. Commercial Vehicle 5. Military Vehicle India became the sixth largest motor vehicle/car manufacturer in the world in 2010 and is expected to rise to the fourth position by 2014. Indian auto manufacturers produced a record 14.82 million motor vehicles in 2010. 3.54 m (million) cars and commercial vehicles were produced in 2010 out of which 2.81 m were cars. Domestic passenger vehicle sales hit a new record in 2009-10 (Apr-Mar) when over 1.95 million vehicles were sold. India is the largest

manufacturer of three-wheelers (444,000 in 2009-10) and the eighth largest commercial vehicle (0.53 m in 2009-10). India is also the largest tractor manufacturing country (around 1/3 of global output) having produced around 370,000 units in 2009-10. The luxury car segment grew at 76 % in 2008 over the previous year although actual sales figures were still very low at around 8,000 units. India is the second largest motorcycle (6.54 m produced in 2007-08) and the fourth largest commercial vehicle manufacturer in the world. India's auto industry produced a total of 14.1 million motor vehicles during 2009-10. Indian car exports have increased at a rapid pace reaching 210,088 units (mostly MarutiSuzuki and Hyundai models) during the first half (Apr-Sep) of 2009-10, well ahead of China. Key player of Indian market Commercial Vehicle Tata Motor, Ashok Leyland, Swaraj Mazda, Mahindra & Mahindra, Force Motors, Eicher Motor Passenger Vehicle Tata Motors, Maruti Udyog, Honda Motors, Toyota, Skoda, Mahindra & Mahindra, Hindustan Motor, Daimler Chrysler Two Wheeler Bajaj Auto, Hero Honda, Honda Motors, TVS , Yamaha Three Wheeler Bajaj Auto, Piaggio India Key for increasing auto industry because of favourable demographics, improving income curve and reducing interest rates whereas facing challenges cost pressure, high expectation and inadequate infrastructure development. Future prospect of the industry is FDI, import tariff, incentive for research and development, environment. This policy aims to promote integrated, phased, enduring and self-sustained growth of the Indian automotive industry. The objectives are to:(i) Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country; (ii) Promote a globally competitive automotive industry and emerge as a global source for auto components;

(iii) Establish an international hub for manufacturing small, affordable passenger cars and a key centre for manufacturing Tractors and Two-wheelers in the world; (iv) Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry;

(v) Conduce incessant modernization of the industry and facilitate indigenous design, research and development; (vi) Steer India's software industry into automotive technology; (vii) Assist development of vehicles propelled by alternate energy sources; (viii) Development of domestic safety and environmental standards at par with international standards. COMPANY ANALYSIS The company have well educated, experienced and management efficient people are serving there in such a world class company like Tata Motor, founded by JRD Tata and Ratna Tata is chairman of the company. No doubt Tata Motor is very well known company in India and in the world wide. It is diversified company of TATA and this has 90 companies with 52,244 no of employees. Through acquisition, Tata has operations in the UK, South Korea, Thailand and Spain. Among these acquisitions is Jaguar Land Rover, a business comprising two struggling iconic British brands that was acquired from the Ford Motor Company in 2008. In 2004, Tata acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The re-branded Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market Tata Motors Subsidiaries, JVs, Associates are as follows. Tata Daewoo Commercial Vehicle Company Ltd., Tata Marcopolo Motors Ltd, Tata Hispano Motors Carrocera S. A.,Tata Motors (Thailand) Limited (TMTL), Tata Motors(SA) Proprietary Ltd, TML Drivelines Limited, Telco Construction Equipment Co. Ltd., TAL Manufacturing Solutions Ltd., Tata Motors European Technical Centre plc., Tata Technologies Ltd. (TTL) and its subsidiaries, TML Distribution Company Limited, Concorde Motors (India) Ltd, Tata Motors Finance Limited, Tata Motors Insurance Broking & Advisory Services Ltd, TML Holdings Pte. Ltd., Sheba Properties Ltd The CP programme was given the highest rating of `A1 +' by the Investment Credit Rating Agency (ICRA) Tata Motors Limited is engaged in the design, manufacture, assembly, sale and service of commercial and passenger vehicles, spare parts, components and accessories as well as financing its vehicles Vehicles of TATA Motors
1. Passenger Vehicle 2. Commercial Vehicle

3. Defence and Homeland Security Vehicle

Company Policy Tata Motors is committed to maximizing customer satisfaction and strive to achieve the goal of excellence by continual improvement through on going design and development, manufacture and sale of reliable, safe, cost effective, quality product and services of international standard, by using environment sustainable technology for improving levels of efficiency and productivity within plants and ancillaries. Tata Motor is also committed in improving the quality of life of the employee, both within and outside the plants and offices through improved work practices and social practice schemes. Indian Promoters Holding in this company 943515803 no. of shares with 35.05% of holding. And the foreign promoter holding in share of the company is 497372515 shares with 18.48 % of holding. Tata Motors has long term credit rating of AA+ and AAA for its debt instruments. From 2010- 2011 authorised capital of Rs 900cr and the issued capital is 634.61 with 634613990 Paid up shares on paid up face value Rs 10. Per Share Ratio Earning per share is Rs. 29.80 Dividend per share is Rs.20 Operating profit per share (Rs) 74.15 Profitability Ratio Net profit margin (%) 3.74 Leverage Ratio Long term debt / Equity 0.52 Total debt/equity 0.79 Fixed assets turnover ratio 2.22 Liquidity Ratio Current ratio 0.77 Quick ratio 0.53 Payout ratios

Dividend payout ratio (net profit) 80.96 Dividend payout ratio (cash profit) 44.74 Earning retention ratio 22.42 Cash earnings retention ratio 56.32 Last Bonus Announcement was in 04 Sep 1995 with 3:4. In 2011 TATA Motors has announced 200% dividend to its shareholders, in comparison to previous year of 150%. TECHNICAL ANALYSIS
1 day OPEN PRICE VOLUME HIGH PRICE 52 WEEK HIGH LOW PRICE 52 WEEK LOW PREV. CLOSE 184.00 3054513 188.30 276.28 180.65 137.65 184.70 1 Week 190.10 4127187 196.95 276.28 188.15 137.65 192.05 1 Month 153.35 2667736 159.90 276.28 153.05 137.65 158.80 1 Year 254.50 3202955 258.94 276.28 252.40 137.65 254.11

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