Rekha Jhunjhunwala Tata Group Stock Sets Record Date For 100% Dividend

Tata Motors is a bluechip automobile company that recorded a market cap of Rs 1,86,730.47 Cr during Friday's closing session. With its headquarters in Mumbai, India, Tata Motors Limited is a multinational Indian automotive manufacturing company and a subsidiary of the Tata Group. In order to determine the eligibility of the shareholders for the purpose of 205% dividend, the Board of Directors of Tata Motors has declared record date.

Tata Motors Dividend

"The Board of Directors at its Meeting held on May 12, 2023 had recommended declaration of final dividend of Rs 2/- per Ordinary Share of face value Rs 2/- each (@100%) and Rs 2.10/- per 'A' Ordinary Share of face value Rs 2/- each (@105%) for the financial year ended March 31, 2023. We wish to inform you that 78th Annual General Meeting ('AGM') of Tata Motors Limited ("the Company") will be held on Tuesday, August 8, 2023 at 3:00 p.m. (IST) through Video Conferencing / Other Audio Visual Means. Pursuant to Regulation 42 of the Listing Regulations, the Register of Members and Share Transfer Books of the Company will be closed from Saturday, July 29, 2023, to Tuesday, August 8, 2023 (both days inclusive) and the Company has fixed Saturday, July 29, 2023 as the "Record Date" for the purpose of determining the entitlement of Members to receive final dividend for the financial year ended March 31, 2023. The payment of such dividend, if approved by the Members at the AGM, shall be distributed amongst the Shareholders, on or from August 14, 2023 onwards and will be made subject to deduction of tax at source," said Tata Motors in a stock exchange filing.

Tata Motors has announced an equity dividend of 100.00% at a face value of Rs 2, or Rs 2 per share, for the fiscal year ended March 2023. This generates a dividend yield at the current share price of Rs 562.20 of 0.36%. The company has a solid track record of dividend declarations during the past five years. Tata Motors Ltd. has issued 15 dividends since July 3, 2002, according to Trendlyne statistics.

Tata Motors Q4 Result Highlights

In comparison to a net loss of Rs. 1,032.84 crore in the same period last year, Tata Motors reported a consolidated net profit of Rs. 5,407.79 crore in the fourth quarter of FY23. On a consolidated basis, revenue from operations stood at Rs 1,05,932.35 crore in Q4FY23, as compared to Rs 78,439.06 crore in Q4FY22. In the December 2022 quarter or Q3FY23, the revenue was at Rs 88,488.59 crore.

Buy Tata Motors?

Post the Q4 results of Tata Motors (TML), ICICI Direct Research said "TML's stock price has grown 12.7% over the past five years (~Rs 310 levels in June 2018), outperforming the broader Nifty Auto index. We maintain BUY on the stock tracking profitability at the helm in domestic CV & PV business (including EVs), JLR's progressive volume recovery on the anvil, reiterated commitment towards EVs & healthy FCF generation. Retaining our financial estimates & marginally tweaking our valuations, we now value TML at Rs 725 on SOTP basis (10x, 2x FY25E EV/EBITDA on India, JLR; Rs 126 value to Indian EV business; earlier TP Rs 650)."

"We remain positive on TTMT given (1) JLR's volume ramp-up resulting in strong revenue, profitability and FCF (aided by high order book), 2) CV segment (on domestic side) benefitting from ongoing upcycle, operating leverage and tailwinds from lower commodity costs & lower discounting and (3) strong market share in PV segment (13.5% vs 8% in FY21) led by revamped portfolio, rising SUV share and rising EV penetration. We expect revenue/EBITDA CAGR of 12%/32% over FY24/25E. We have a 'BUY' rating with SoTP based TP of Rs 605 (Mar-25)," said Prabhudas Lilladher in a note.

"The stock trades at 19.2x/16.7x FY24E/FY25E consolidate P/E and 4.9x/4.2x EV/EBITDA. Reiterate BUY with our SOTP-based TP of INR650 (Jun'25)," said Motilal Oswal.

"TML is witnessing an improvement in all business verticals - JLR, CVs, and PVs. The company is witnessing robust demand and is expected to deliver better operational efficiencies, aided by aggressive launches, market positioning, product differentiation, cost savings, and investments in research and development (R&D). Q4FY24 was the second consecutive quarter in a row when JLR, PV, and CV businesses, simultaneously reported a sequential improvement in margins. Going forward, the management has shared optimistic outlook on volume performance in JLR business due to gradual improvement in supply chain issues and aims to register double-digit EBITDA margin in domestic CV and PV business. Further the management is looking for a positive EBITDA margins in its EPV business in near term. We maintain Buy rating on the stock with SOTP-based revised PT of Rs. 633. The stock trades at EV/EBITDA multiple of 5.1x its FY25E estimates," said Sharekhan.

Rekha Jhunjhunwala Stake In Tata Motors

As per the shareholding pattern of Tata Motors for January to March 2023 quarter, Rekha Jhunjhunwala wife of late ace investor Rakesh Jhunjhunwala held fully paid up equity shares of 5,22,56,000 or amounting to a stake of 1.57% in the company.

Tata Motors Share Price

On Friday, the shares of Tata Motors closed on the BSE at Rs 562.20 apiece up 0.46% from the previous close of Rs 559.65. The stock touched a 52-week-high of Rs 576.50 on (08/06/2023) and a 52-week-low of Rs 375.50 on (26/12/2022).

Disclaimer

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