Tata Motors share worth: Purchase Tata Motors, goal worth Rs 500: ICICI Direct


ICICI Direct has purchase name on Tata Motors with a goal worth of Rs 500. The present market worth of . is Rs 436.4. Time interval given by analyst is one 12 months when Ltd. worth can attain outlined goal.

Tata Motors Ltd., included within the 12 months 1945, is a Giant Cap firm (having a market cap of Rs 144249.56 Crore) working in Auto sector.

Tata Motors Ltd. key Merchandise/Income Segments embody Motor Autos, Spare Elements & Others, Miscellaneous Items, Different Working Income and Sale of companies for the 12 months ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the corporate reported a Consolidated Complete Revenue of Rs 79341.61 Crore, up 8.79 % from final quarter Complete Revenue of Rs 72931.86 Crore and down -11.17 % from final 12 months similar quarter Complete Revenue of Rs 89319.34 Crore. Firm reported internet revenue after tax of Rs -1099.32 Crore in newest quarter.

« Again to advice tales




Funding Rationale
Tata Motors’ Q4FY22 outcomes have been a beat on estimates. The important thing optimistic shock was 220 bps sequential soar in EBITDA margins at 14.7%, largely attributable to operational outperformance in any respect the important thing divisions particularly India CV, PV in addition to abroad JLR. Notably, it additionally guided for lowering internet automotive debt (~|48,700 crore) to close zero ranges by FY24E via inner FCF era & sale of non core property. The brokerage likes Tata Motors for its continued EV alertness in India via ideas & actual launches (PV market chief with Nexon; plans to introduce 10 fashions by 2025) and JLR (Jaguar all-electric by 2025; 6 BEVs in Land Rover in subsequent 5 years). Going ahead, on the again of wholesome demand prospects and robust order e book, it expects wholesome 13.2% income CAGR over FY22-24E backed by 15.8% whole quantity CAGR. Margins are seen at 14.3% in FY24E together with RoCE at ~13.7%. It retains BUY score with an SoTP based mostly revised goal worth of Rs 500/share



Promoter/FII Holdings
Promoters held 46.4 per cent stake within the firm as of 31-Mar-2022, whereas FIIs owned 14.45 per cent, DIIs 14.39 per cent.

(Disclaimer: Suggestions given on this part or any studies hooked up herein are authored by an exterior occasion. Views expressed are that of the respective authors/entities. These don’t characterize the views of Financial Occasions (ET). ET doesn’t assure, vouch for, endorse any of its contents and hereby disclaims all warranties, categorical or implied, referring to the identical. Please seek the advice of your monetary adviser and search impartial recommendation.



Supply hyperlink