Tata Motors - DVR



CFO "higher receivables were due to a higher proportion of business with state transport undertakings and the defence sector, where the collection period is longer "

So this is safe sovereign backed receivables…

(Rohit) #169

If any one is buying TATA motors , which stock you are buying , TATA motors or TATA motors DVR or both. Though both have positive correlation , I am feeling that DVR is falling at faster rate than normal share. So shall we expect more up move also when they will start moving upwards. Which one to prefer if we want to buy , Normal share or DVR and why ?

Disc : Invested

(vpbalu) #170

Tata Motors DVR is what I am buying. If you are a retail investor and believe in long term story of Tata Motors success, then investing in Tata Motors DVR is more prudent. Why would you pay a premium when a discounted option is available. However if you are skeptical about long term Tata Motors story, then you have to stay away from both the Tata Motors option anyway. Don’t buy when you don’t have conviction and if you have conviction then better buy the cheaper option.
Disc: Invested in DVR

(Gary) #171

Hi @nav_1996,
The logical way to argue this is - Did the % of business with STUs / defence go up substantially in last 2 years? If not, this argument is not valid. Plus, how come Ashok Leyland has done so well … Credit days / DSO is one of the best indicator of how much push is happening in supply chain

([email protected]) #172

I think as compared to its key rival ‘Ashok Leyland’ Tata Motors seems to be offering higher discounts and indirectly longer receivable cycles . Here is an news article from last November which indicates at that.

(Vijay) #173

During Eicher concall, Lal mentioned this. He said competition is pushing more at the expense of margins and Eicher won’t do it. So this has been happening for a long time.

(Gary) #174

(Vijay) #175

(Rudresh) #176

Rating has been downgraded. Spreading pepper on the wound. I have Started downsizing my holding.

Rating .pdf (150.8 KB)

(Shailesh) #177

Dear Vijay ,

I think you should disclose your positions


Discl : Recently Invested .

(Vijay) #178

I don’t hold Tata motors now. I held it long time back and looking at buying it again if things are getting better for them.

([email protected]) #179

Hi All,

I was going through the annual report of Tata Motors. I see that the net debt / equity ratio has reduced even with increasing debt. (Ref Page 17 in annual report)

This indicates that the equity has increased. The details of the same is mentioned in page 264 (for 2018) and page 265 (for 2017) in their annual report.

If my understanding is correct, the equity share capital was same for both years.

Other equity was 57K crores in 2017 and 95K crores in 2018. I am not able to reach to the 0.42 Net Debt / Equity.

I am asking this basic question to enhance my understanding.


([email protected]) #180

Hi All,

With respect to Tata Motors, I think JLR is losing share with respect to its key competitors. I am considering Mercedes, BMW, Audi and Volvo in the comparison set.

Mercedes grew by 3.9%
BMW also grew. Could not get the official link
Audi grew by 4.5%.
Volvo grew by 14%.
JLR grew by only 0.4%

Here are the links

It seems that the demand for luxury vehicles is largely intact and growing yet JLR is unable to grow.

I had seen in a previous article that JLR was lowest in terms of quality perception.
Here is the link.

One of the thing that comes to my mind is that there a problem with the brand? (if customers feel it is less cool to own a JLR product as compared to its key German / Swedish rivals). If there is a problem with the Brand, my understanding is JLR would continue to struggle.

Disc: Invested


(Shailesh) #181

Interestingly Car statistics change every couple of years driven by success / failures of latest product launch .

In terms of size JLR is pigmy as compared to BMW , Ford , GM etc . It is more of “snob” car like Royal enfield .

Just like Bullets never got best marks on quality JLR never got best marks on quality for ages . but SNOB value still remained …

Read this in 2016 … It was crazy to buy JLR reading below and as much as it is crazy to sell JLR ( tata motors ) reading above news …

(Shailesh) #182

Sorry wrong attachment … correct one below …


(onlish2014) #184

Need to see if Tesla’s loss is JLR’s gain.

Cancellations for Model 3 orders have picked up in recent weeks. Refunds now outpace deposits for Tesla’s new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. Tesla disputes that.

In an analyst note delivered to clients Thursday, Gill cited extended wait times for the car, the expiration of a $7,500 tax credit, and the fact that Tesla has not yet made the $35,000 base model of the car available for purchase yet.

Full article: https://money.cnn.com/2018/07/19/technology/business/tesla-downgrade/index.html

(Rohit) #185

Looks are subjective , but this new TATA harrier looks awesome. They are trying v hard to improve the products .

Disc : Invested recently.

(Divyanshu Taneja) #186

I am invested in Tata motors but I am afraid of the impact of brexit as per some reports its impact can cost Tata motors in billion dollars , I am afraid to this , can any one clear this point of brexit and it’s impact on Tata motors and (2) whether it is factored in the current prices or not (3) how much more downside is there due to brexit if it is not factored in

([email protected]) #187

Tata Motors continues to disappoint.