Author: Thalhath K P
ITM Business School
Batch: Fintech Roll no: 21230023871
Introduction:
Tata Motors Limited is an Indian Multinational automotive company, headquartered in Mumbai and part of the Tata Group. The company produces cars, trucks, vans, and busses. Subsidiaries include British Jaguar Land Rover and South Korean Tata Daewoo. Tata Motors has joint ventures with Hitachi (Tata Hitachi Construction Machinery) and Stellantis, which makes vehicle parts for Fiat Chrysler and Tata-branded vehicles. On 12 October 2021, private equity firm TPG invested $1 billion in Tata Motors’ electric vehicle subsidiary.
Objectives:
To calculate beta and its significance.
Views And Reviews:
Views and reviews about Tata Motors are generally positive, supported by various sources. According to customer reviews on “ConsumerAffairs”, many praise Tata Motors for its affordable yet durable vehicles, especially in emerging markets like India and Africa. Additionally, reputable automotive publications such as CarWale and Autocar India often commend Tata Motors for its innovation, safety features, and value for money. However, some critics cite occasional quality issues and customer service concerns. Nevertheless, Tata Motors’ overall reputation remains strong, bolstered by its diverse product portfolio and global presence.
Review 2
Tata Motors has an overall rating of 4.2 out of 5, based on over 4,072 reviews left anonymously by employees. 83% of employees would like to upskill their career in TATA Motors.
Data collection:
Data was downloaded from nseindia.com for 01/02/2023 to 30/01/2024 for Nifty as well as for TATA Motors. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both. Returns for X and Y were calculated, X being Nifty 50 and Y being TATA Motors. Finally, data analysis was done.
Data Analysis:
Y=a+bx
Equation: Return on Tata Motors = -1.08 +0.35 Return on Nifty 50
t-stat for b = -1.12
R Square = 0.0267
F = 1.257
The above equation shows the relationship between Nifty 50 and Tata Motors .Return of Tata Motors is dependent variable and Return of Nifty 50 is independent variable. It shows relationship between Nifty 50 and Tata Motors. No of observation are 50. Figure which is written in bracket that is (-1.12) is t- stat for b. The P value for which is 0.2680 which means Nifty 50 is statistically significant at 5% level. R square 0.0267 is which mean 2.67 of variances in Tata Motors share price are explained by Nifty 50 in other words 0.3126 is error means 31.26% is due to the variables which are not in the model. F is 1.257. Overall model is statistically significant.
Conclusion:
Beta is 0.35 which is less than 1, therefore it is good for long Term Investment.
(Reference- www.Glassdoor.com, consumeraffairs)r