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    Calculations Tata Nano

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    vighneshmehta
    The document provides financial projections for Tata Motors' Nano car launch, including projected sales, costs, profits, and impact on share price and market capitalization for years 2010-2015. It estimates that the Nano launch will increase Tata Motors' average share price by over Rs. 384 and add over Rs. 62 billion to the company's total goodwill, representing a 1.19% increase in market capitalization. Current production capacity is 250,000 units annually at plants in Gujarat and Pune, with a Rs. 20 billion investment planned for the Sanand plant.

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    Calculations Tata Nano

    Uploaded by

    vighneshmehta
    69 views5 pages
    The document provides financial projections for Tata Motors' Nano car launch, including projected sales, costs, profits, and impact on share price and market capitalization for years 2010-2015. It estimates that the Nano launch will increase Tata Motors' average share price by over Rs. 384 and add over Rs. 62 billion to the company's total goodwill, representing a 1.19% increase in market capitalization. Current production capacity is 250,000 units annually at plants in Gujarat and Pune, with a Rs. 20 billion investment planned for the Sanand plant.

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    The document provides financial projections for Tata Motors' Nano car launch, including projected sales, costs, profits, and impact on share price and market capitalization for years 2010-2015. It estimates that the Nano launch will increase Tata Motors' average share price by over Rs. 384 and add over Rs. 62 billion to the company's total goodwill, representing a 1.19% increase in market capitalization. Current production capacity is 250,000 units annually at plants in Gujarat and Pune, with a Rs. 20 billion investment planned for the Sanand plant.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    69 views5 pages

    Calculations Tata Nano

    Uploaded by

    vighneshmehta
    The document provides financial projections for Tata Motors' Nano car launch, including projected sales, costs, profits, and impact on share price and market capitalization for years 2010-2015. It estimates that the Nano launch will increase Tata Motors' average share price by over Rs. 384 and add over Rs. 62 billion to the company's total goodwill, representing a 1.19% increase in market capitalization. Current production capacity is 250,000 units annually at plants in Gujarat and Pune, with a Rs. 20 billion investment planned for the Sanand plant.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Price of Nano 1,20,000

    Down Payment 24000


    Loan Required 96000
    No of installments of car loan 36
    Rate of Interest p.a 16%
    EMI Rs. 3,375.08
    Yearly Commitments Rs. 40,500.90
    Net Savings Required for individual Rs. 40,500.90
    Other Savings(Insurance,MF)(25%) Rs. 13,500.30
    Savings p.a Rs. 54,001.20
    Assuming Savings = 35% of Salary
    Min Salary required Rs. 154,289.15
    Salary p.m as on 2010 Rs. 12,857.43
    Target Crowd 18000000
    Current Capacity of Gujarat and Pune Plant 250000
    Investment in Sanand 2000000000

    Income Statement For Nano


    2010
    Price 120000
    Capacity Utilisation 75%
    Income 22500000000
    COGS 14625000000
    EBDIT 7875000000
    Depreciation 200000000
    Selling & Expense 1687500000
    EBIT 5987500000
    Interest 90000000
    PBT 5897500000
    Tax(30%) 1769250000
    PAT 4128250000
    Contribution to EPS 22.0230991569
    Incremental Dividends Paid 7.70808470491
    Dividends Paid due to Nano Profits 7.70808470491
    Terminal Value
    Increase in Value of share 384.828835594

    Tata Motors Share Price prior to launch 573


    Increase to Share Price due to Nano Profits 957.828835594
    Avg Share price 991
    Addition to Goodwill due to Nano 33.1711644062
    No of shares 187450911
    Total Goodwill added due to Nano 6217964986.88
    Percent of Market Cap 1.19%
    Current Capacity of Gujarat and Pune Plant 250000

    2011 2012 2013 2014 2015


    132000 145200 159720 175692 193261.2
    80% 85% 90% 100% 100%
    26400000000 30855000000 35937000000 43923000000 48315300000
    17160000000 20055750000 23359050000 28549950000 31404945000
    9240000000 10799250000 12577950000 15373050000 16910355000
    200000000 200000000 200000000 200000000 200000000
    1980000000 2314125000 2695275000 3294225000 3623647500
    7060000000 8285125000 9682675000 11878825000 13086707500
    90000000 90000000 90000000 90000000 90000000
    6970000000 8195125000 9592675000 11788825000 12996707500
    2091000000 2458537500 2877802500 3536647500 3899012250
    4879000000 5736587500 6714872500 8252177500 9097695250
    26.0281477106292 30.603145482 35.822031828 44.023138943 48.533747857
    9.10985169872021 10.711100919 12.53771114 15.40809863 16.98681175
    16.8179364036273 27.529037322 40.066748462 55.474847092 72.461658842
    527.93494299

    (July 2008)
    (Sep 2010)
    Income Statement For Nano
    2010 2011 2012 2013
    Price 120000 132000 145200 159720
    Capacity Utilisation 0.75 0.8 0.85 0.9
    Income 22500000000 26400000000 30855000000 35937000000
    COGS 14625000000 17160000000 20055750000 23359050000
    EBDIT 7875000000 9240000000 10799250000 12577950000
    Depreciation 200000000 200000000 200000000 200000000
    Selling & Expense 1687500000 1980000000 2314125000 2695275000
    EBIT 5987500000 7060000000 8285125000 9682675000
    Interest 90000000 90000000 90000000 90000000
    PBT 5897500000 6970000000 8195125000 9592675000
    Tax(30%) 1769250000 2091000000 2458537500 2877802500
    PAT 4128250000 4879000000 5736587500 6714872500
    Contribution to EPS 22.023099157 26.028147711 30.603145482 35.822031828
    Incremental Dividends Paid 7.7080847049 9.1098516987 10.711100919 12.53771114
    Dividends Paid due to Nano Profits 7.7080847049 16.817936404 27.529037322 40.066748462
    Terminal Value
    Increase in Value of share 384.82883559

    Tata Motors Share Price prior to launch 573 (July 2008)


    Increase to Share Price due to Nano Profits 957.82883559 (Sep 2010)
    Avg Share price 991
    Addition to Goodwill due to Nano 33.171164406
    No of shares 187450911
    Total Goodwill added due to Nano 6217964987
    Percent of Market Cap 0.0119346737
    2014 2015
    175692 193261.2
    1 1
    43923000000 48315300000
    28549950000 31404945000
    15373050000 16910355000
    200000000 200000000
    3294225000 3623647500
    11878825000 13086707500
    90000000 90000000
    11788825000 12996707500
    3536647500 3899012250
    8252177500 9097695250
    44.023138943 48.533747857
    15.40809863 16.98681175
    55.474847092 72.461658842
    527.93494299

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