Tata Group-backed automobile giant, Tata Motors share price tumbled by nearly 5% to hit an intraday low of Rs 905 apiece. The stock is in focus after report said that Tamil Nadu may become its hub for electric vehicles export. Tata Motors stock is struggling to hold Rs 900 levels, nonetheless, its YTD performance is still on the double-digit upside. And also, about 18 analysts continue to maintain BUY on the stock for 15-35% gains ahead. This month, the company has fixed record date for its 300-310% dividend for FY24.
Tata Motors Share Price:
At the time of writing, Tata Motors stock traded at Rs 925.20 apiece, down by 2.7% with market cap of Rs 3,07,517.91 crore. In the early trade, the stock touched an intraday low of Rs 905 apiece, tumbling by 4.8% at least on BSE.
The stock's 52-week high and low is at Rs 1,065.60 apiece and Rs 1,065.60 apiece respectively. YTD, the stock is up by 18% so far.
Tata Motors Big Announcement:
Tata Motors Group is likely to make Tamil Nadu a hub for exporting electric vehicles (EVs) based on the Electrified Modular Architecture (EMA) from Jaguar Land Rover (JLR), sources close to the development said, as per Business Standard report. It added, while finer details around the models are not known, sources revealed that these could be JLR models made in India for export as well as Tata EVs based on the EMA architecture.
In the annual report for FY24, N Chandrasekaran, chairman of Tata Motors told shareholders, the company's EV business will focus on driving up penetration through multiple product launches, focus on market development, charging network enhancements and continuing to introduce aspirational product features.
Tata Motors Dividend:
The auto player has fixed Tuesday, June 11, 2024, as the "Record Date" for the purpose of determining the entitlement of Members to receive the aforesaid dividend for the financial year ended March 31, 2024.
While the payment of such dividend, if approved by the shareholders at the AGM, shall be distributed amongst them, on or before Friday, June 28, 2024, and will be made subject to deduction of tax at source.
Tata Motors will pay a final dividend of ₹6.00 per Ordinary Share of the face value of ₹2 each (i.e.,@ 300%) (comprising of ₹3.00 normal dividend and ₹3.00 special dividend) and ₹6.20 per 'A' Ordinary Share of the face value ₹2 each (i.e.,@ 310%) (comprising of ₹3.10 normal dividend and ₹3.10 special dividend) for the financial year ended March 31, 2024.
Tata Motors Share Price Target:
As per the Trendlyne data, the consensus recommendation from 31 analysts for Tata Motors Ltd. is HOLD. Of the total, 11 analysts have suggested 'STRONG BUY' on Tata Motors, while 7 recommend 'BUY'. The average 1-year target is at Rs 1,071, hinting at 16% potential upside from current levels.
Notably, the highest target is set by Sharekhan at Rs 1,235 on Tata Motors with BUY recommendation. This will be over 33% upside ahead.
Tata Motors Split:
Tata Motors board has approved the demerger of the company into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity.
On the demerger, Chandrasekaran said, "This will also help secure the considerable synergies across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software. This will lead each Company to deliver a superior experience for customers, better growth prospects for employees and, enhanced value for shareholders.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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