Tata AutoComp Systems Limited was promoted by Tata Industries Limited in 1995. Tata Industries Limited has become a subsidiary of Tata Sons Limited from September 1, 2010. Accordingly, Tata Sons Limited has also been classified as promoter as per SEBI (Issue of Capital and Disclosure Requirement) Regulations 2009, as amended. And its customer for its automotive components was Mahindra Ford (India) limited. The company registered office is located at Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001.
Here are some key elements to consider when conducting a fundamental analysis of Tata AutoComp Systems:
- Financial Performance: Review Tata AutoComp’s financial statements, including the income statement, balance sheet, and cash flow statement. Analyze revenue growth, profitability, liquidity, and solvency ratios. Look for consistent revenue growth, improving profit margins, and strong cash flow generation.
- Competitive Position: Assess Tata AutoComp’s competitive position within the automotive components industry. Evaluate its market share, customer base, and relationships with automobile manufacturers. Identify its unique selling propositions, technological capabilities, and any competitive advantages it may have over its peers.
- Product Portfolio: Evaluate Tata AutoComp’s product portfolio and its alignment with industry trends. Analyze the diversity and quality of its products, as well as their demand and market acceptance. Consider the company’s ability to adapt to changing customer preferences and emerging technologies in the automotive sector.
- Customer Relationships: Examine Tata AutoComp’s relationships with its customers, especially original equipment manufacturers (OEMs) in the automotive industry. Assess the company’s ability to secure long-term contracts and maintain strong business relationships. Customer concentration risk should also be evaluated.
- Management Team: Evaluate the experience and track record of Tata AutoComp’s management team. Consider their strategic vision, operational expertise, and ability to navigate industry challenges. Assess their capital allocation decisions, cost management initiatives, and focus on innovation and research and development.
- Industry Analysis: Understand the automotive components industry and its growth prospects. Analyze the industry’s overall dynamics, including technological advancements, regulatory changes, and shifts in consumer preferences. Evaluate the potential impact of electric vehicles, autonomous driving, and other industry trends on Tata AutoComp’s business.
- Corporate Governance and Risk Management: Assess the company’s corporate governance practices, board composition, and transparency in financial reporting. Evaluate its risk management strategies and ability to mitigate operational, financial, and regulatory risks. Consider any legal or regulatory issues that may impact the company’s operations.
- Sustainability and ESG Factors: Evaluate Tata AutoComp’s commitment to environmental, social, and governance (ESG) factors. Consider its efforts in areas such as environmental sustainability, employee welfare, community engagement, and ethical business practices.
- Valuation: Determine the company’s valuation using various methods such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and discounted cash flow (DCF) analysis. Compare the company’s valuation multiples with its historical averages and industry peers to assess whether the stock is undervalued, overvalued, or fairly priced.
Business Profile of Tata AutoComp Systems Limited:
The company manufactures and supplies a variety of components, assemblies and aggregates (which are installed in vehicles as complete systems) to automotive original equipment manufacturers (‘OEMs’) and other customers primarily based in India. The company OEM customers use its components in passenger vehicles, commercial vehicles and agricultural tractors which they sell in India and throughout the world.
The company largest customers are Tata Motors, which accounted for approximately 48% of company total income for the six months ended September 30, 2010. Some of its other significant customers include Fiat India Automobiles Private limited, Toyota Kirloskar Motor Private Limited, General Motors India Private Limited, Mahindra & Mahindra Limited, Volkswagen India Private Limited, Ford India Private Limited, Honda Siel Cars India Limited and Ashok Leyland Limited.
The company operate its businesses through the issuer, Tata AutoComp Systems Limited (TACO), its subsidiaries, Automotive Stampings and Assemblies Limited (ASAL), Tata Toyo Radiator Limited (TTRL), TACO Composites Limited (TACOCL), Nanjing Tata AutoComp Systems Limited (NTACO) and their joint ventures with multinational companies, TJCAL, Tata Yazaki Autocomp Limited (TYAL), Tata AutoComp GY Batteries Limited (TGYL), Tata Ficosa Automotive Systems Limited (Tata Ficosa) and TACO Hendrickson Suspensions Private Limited (THSPL).
Its divisions:
- Interior and plastics division:
- Supply chain management
- TACO Engineering Centre
Subsidiaries:
- ASAL
- TTRL
- TACOCL
- NTACO
Main joint ventures:
- TJCAL
- TYAL
- TGYL
Other joint ventures :
- Tata Ficosa
- THSPL
Customer and Products:
- Tata Motors Limited – Passenger cars business unit Instrument panel, door trim, bumper, pillar trim, body side moulding, sill cover, cockpit, engine trim, underhood
- Tata Motors Limited – Commercial vehicles business unit Bodyside moulding, door trim, underhood, instrument panel, floor console, air vent, pillar trim, exterior trims
- General Motors India Private Limited – Instrument panel, door trim, console, bumper, exterior trims, functional black parts, ducts, pillar trims
- Fiat India Automobiles Limited Instrument – Panel, door trim, floor console, bumper
- Mahindra & Mahindra – Bumper, grill assembly
- Mahindra Renault Private Limited – Bumper, parts within parts, door trim, underhood
- Toyota Kirloskar Motor Private Limited – Interior trims, pillar trims, exterior trims
- Ford India Private Limited – Interior trims exterior trims, handle assy
- Ashok Leyland – Nissan Instrument panel, air vent
- Nissan Motor India Private Limited – Exterior trim parts
- John Deere India Private Limited – Cowl cover
- Export – Air vent, instrument panel, trim parts
Part of the Promoter Group of the Company:
- Tata Motors Limited
- Tata Investment Corporation
- Tata Capital Limited.
Company’s top five Listed Group Companies:
- Tata Consultancy Services Limited (TCS)
- Tata Steel Limited (Tata Steel)
- Tata Motors Limited (Tata Motors)
- The Tata Power Company Limited (Tata Power)
- Titan Industries Limited (Titan)
(Only the headline and picture of this report may have been reworked by the ShareMantras staff; the rest of the content is auto-generated from a syndicated feed.)