Tata Motors, the automobile giant of Tata Group, has been among major movers of volatile market trend since the start of 2025. In the trading week from January 6-10, Tata Motors share price nosedived by 2% on BSE, while its price value neared closer to its 52-week low. Despite the bearish trend, majority of brokerages have recommended BUY on Tata Motors, however, brokerage Motilal Oswal is the latest to recommend NEUTRAL with target price a little over Rs 800 levels.
Tata Motors Share Price:
Last week, on Friday, the share price stood at Rs 774.45 apiece on BSE, down by 0.72% with market cap of Rs 2,85,084.72 crore. At the current market price, Tata Motors share price is Rs 56.5 away from breaching its 52-week low of Rs 718 apiece. The stock price has significantly corrected from its 52-week high of Rs 1,179.05 apiece.
Due to its latest weekly drop of 2%, Tata Motors year-to-date performance has been squeezed with gains of 4.5% on BSE. In a year, the stock is down by 4.7%.
As per the overall data, Tata Motors global wholesales in Q3 FY25, including Jaguar Land Rover were at 341,791 united, higher by 1%, as compared to Q3 FY24. However, global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in Q3 FY25 were at 97,535 units, lower by 1%, over Q3 FY24.
On the other hand, global wholesales of Tata Motors passenger vehicles in Q3 FY25 were at 139,829 units, higher by 1% as compared to Q3 FY24. While global wholesales for Jaguar Land Rover were 104,427 vehicles, higher by 3% as compared to Q3 FY24. Jaguar wholesales for the quarter were 5,604 vehicles, while Land Rover wholesales for the quarter were 98,823 vehicles.
Tata Motors Share Price Recommendation:
According to Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. Of the total, 12 analysts have recommended 'STRONG BUY' and 6 analysts have suggested 'BUY' on Tata Motors.
However, brokerage Motilal Oswal has advised a NEUTRAL Rating.
In its latest brokerage note, Motilal Oswal said Tata Motors Ltd (TTMT)'s stock had corrected ~32% from its peak, largely driven by muted growth estimates across underlying industries and cost-related pressure, particularly in JLR.
"While management has maintained its guidance for JLR during 2QFY25 results, we think it is likely to see persistent margin pressure over FY24-27, given: 1) weak demand in key regions; 2) rising cost pressure as it invests in demand generation; 3) normalizing mix; and 4) EV ramp-up, which is likely to be margin-dilutive. Even in India, both CV and PV businesses are seeing a moderation in demand," the brokerage added.
Hence, Motilal lastly said, "The stock trades at 12.1x/13.4x FY25E/FY26E consol. EPS and 5.2x/4.6x EV/EBITDA. Reiterate Neutral with Dec'26E SOTP-based TP of INR810."
Going ahead, a board meeting of directors of Tata Motors is scheduled to be held on Wednesday, January 29, 2025, inter alia, to consider and approve the Audited Standalone Financial Results and Unaudited Consolidated Financial Results (with Limited Review) for the third quarter and nine months ended December 31, 2024.
Also, the company is planning the demerger of Tata Motors 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. The demerger ratio is 1:1, which means that shareholders of Tata Motors will have identical shares in both the listed companies. The demerger is expected to be completed by March 2025.
Disclaimer: The write-up is just for information purposes, not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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