Tata Motors Ltd.
Infrastructure · NSE
52-week range
₹306 – ₹509
From 52w high
-15.3%
RSI (14)
52.3
vs SMA 50 / 200
↓ 50 · ↓ 200
Tata Motors Commercial Vehicles (TMCV) reported a trailing PE of 7.01 — the lowest among its Infrastructure peer group — against a debt-to-equity of 87.5 and a 5-year earnings CAGR of -48.1%, with profit margin at 0% in the most recent period. The stock trades at ₹425.5, down 16.4% from its 52-week high and 6.67% over the past 3 months, below its 50-DMA of ₹434.97. April 2026 commercial vehicle sales grew 28% YoY, providing an operational data point that analysts appear to be pricing into a forward PE of 22.19.
- ✓Trailing PE of 7.01 is ranked 1st (lowest) among 6 Infrastructure sector peers, which include BEL (53.5x), L&T (33.8x), ABB (90.5x), CG Power (113.8x), and Cummins (66.0x).
- ✓April 2026 commercial vehicle sales grew 28% YoY, and the Lucknow plant crossed 10 lakh cumulative CV production — both indicating operational momentum at the segment level.
- ✓Debt trend is classified as falling, suggesting the company is reducing its leverage position from what remains a very high base.
- ✓Mean analyst rating of 1.38 across 21 analysts (1–5 scale, lower = more constructive) reflects coverage attention to the stock.
- ✗Earnings have contracted at a 5-year CAGR of -48.1% and the current profit margin is 0%, meaning the business has not demonstrated sustained profitability over the measurement horizon.
- ✗Debt-to-equity of 87.5 is exceptionally high; at this level, interest obligations can significantly impair free cash flow generation and limit financial flexibility in a downturn.
- ✗FCF was positive in only 2 of the available historical years, and ROE exceeded 15% in only 2 years — indicating capital returns have been inconsistent and below standard quality thresholds.
- ✗Quality score of 28 ranks 4th of 6 among Infrastructure peers, and the stock is below its 50-DMA with the 200-DMA unavailable due to limited price history (122 bars).
- ·Tata Motors reported 28% YoY growth in commercial vehicle sales for April 2026, with multiple sources confirming the figure — this is the most recent hard operational data point available.
- ·The Lucknow plant surpassed 10 lakh cumulative CV units produced, cited as a production milestone in mid-April 2026.
- ·News flow across 8 articles is 5 positive, 3 neutral, and 0 negative; however, the stock has still declined 6.67% over the past 3 months, suggesting the market has not yet translated positive sales news into price appreciation.
- ?Given a debt-to-equity of 87.5 and only 2 FCF-positive years on record, how does the company plan to service its debt obligations if the earnings rebound implied by the 22.19 forward PE does not materialise on schedule?
- ?The trailing PE of 7.01 is the cheapest in the peer group by a wide margin — does this gap reflect a genuine valuation discount, a structural difference in business model risk, or the market pricing in the probability of continued earnings pressure?
- ?April 2026 CV sales grew 28% YoY: is this growth driven by market share gains, an industry-wide volume recovery, or a base effect from weak April 2025 numbers — and how does it translate to margin and profit at the company level?
- ?Does the falling debt trend represent a deliberate balance sheet repair programme with a defined timeline, or is it an output of reduced capital expenditure that could constrain future capacity and growth?
PE
7.0
Forward PE
22.2
ROE
—
Profit margin
0.0%
D/E
87.55
Dividend yield
—
Quality score
28/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.