Tata Motors shares have more than tripled investor income in a span of one year, increasing to Rs 360.65 apiece from Rs 98.20, a year ago. Brokerage firm Jefferies expects yet another 34 per cent rally in this Rakesh Jhunjhunwala stock from the present levels, on the confluence of enhanced approach and cyclical recovery. “Improving India business provides a higher floor to fair value,” it mentioned. It has pegged a target cost of Rs 455 apiece, implying a 34 per cent rally, with a ‘buy’ rating to the stock. By FY24, the brokerage firm sees EBITDA increasing 90 per cent from FY21, EPS nearing its previous peak and close to-zero net auto debt.
In traded volume terms, 12.29 lakh Tata Motors shares have traded on BSE, and a total of 2.57 crore units on NSE, so far in the trade. The brokerage firm Jefferies believes that cyclical demand recovery across segments, increasing earnings and money flows at JLR, new Range Rover and Range Rover Sport launches in 12-18 months and improvement in Indian PV market place shares and margins will act as catalysts for Tata Motors shares. The firm highlighted that JLR financials look to be enhancing as focus shifts from volumes to profit. “Indian trucks are on the cusp of a cyclical recovery and Tata’s market share losses are behind it,” it mentioned.
Also, Jefferies sees that in India PVs, the new SUV-focused approach and item styling are promising. It also believes that enhancing EBITDA and decreased investments ought to drive a robust improvement in JLR’s money flows in the coming years.
At the finish of March 31, 2021, Rakesh Jhunjhunwala held 4.27 crore Tata Motors shares or a 1.29 per cent stake in the firm. While foreign portfolio investors (FPIs) held a 13.78 per cent stake or 45.74 crore shares. The promoter holdings stood at 46.41 per cent.
On Thursday, Tata Motors announced its sales in the domestic and international market place for Q1FY22, which stood at 1.14 lakh autos, as compared to 24,978 units for the duration of Q1 FY21. Tata Motors’ passenger automobile division sold 24,110 units in June, robust 3‐digit development of 111 per cent versus 11,419 units in June 2020. Overall Tata Motors’ domestic sales have risen by 78 per cent to 43,704 units. While, total domestic industrial automobile sales jumped to 22,one hundred units in June from 11,401 units in May, this year.
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