Tata Group-backed 79-year-old automobile giant, Tata Motors is closing its gap towards the Rs 1,000 share price. The key events to trigger sentiments in Tata Motors ahead is its Q4 earnings, dividend recommendations and update on split in the ratio of 1:2. Five brokerages have recommended BUY with highest target being Rs 1,188. But, in the next two years, the prediction for Tata Motors is around Rs 1,200 to Rs 1,600.
Tata Motors Share Price:
On April 23rd, Tata Motors share price rose as much as by 1.5% to end at Rs 987.75 apiece. The stock's 52-week high is of Rs 1,065.60 apiece and low of Rs 468.30 apiece. The adjusted price-to-equity share of Tata Motors is at 16.14x.
YTD, Tata Motors share is up by 25%. In a year, the stock has more than doubled investors money with gains of a whopping 108%. In the long-term, Tata Motors has given massive 358% returns in 5-years, and its all-time gains is around 3,012.98% on NSE so far. The stock was merely at Rs 31.73 apiece on January 1, 1999.
Tata Motors Latest Big Announcement:
As per a Reuters report, Tata Motors is likely to expand its manufacturing facility in the new plant in Tamil Nadu with an investment of 1 billion dollars. This will be expanded with a focus on producing its luxury car brand Jaguar Land Rover (JLR).
Tata Motors Earnings:
Tata Motors is planning to declare its Q4 results on May 10 along with dividends. Tata Motors is planning to recommend dividends, if any on the Ordinary Shares and 'A' Ordinary Shares in the Company for the financial year ended March 31, 2024, for the approval of the shareholders at the forthcoming 79th Annual General Meeting of the Company. This will be another big booster for Tata Motors DVR.
Tata Motors Target Prices:
Raj Kumar, founder of WeInvestSmart.com, in his LinkedIn post last month said, Tata Motors, a cornerstone of India's automotive industry, is steering towards an electrifying future with its focus on electric vehicles (EVs), alongside its traditional stronghold in passenger and commercial vehicles. The company's strategic ownership of luxury brands Jaguar and Land Rover (JLR) adds a premium edge to its portfolio. With over 75 years of history marked by innovation and excellence, Tata Motors is navigating through the challenges and opportunities of the global automotive landscape.
He said, that Tata Motors share price target is estimated at Rs 1,004, with a range between Rs 962.80 and Rs 1,046.16 for 2024. But in 2025, the projected target rises to Rs 1,255, within a range of Rs 1,203.50 to Rs 1,307.70. Further, according to him, the target moves up to Rs 1,569 in 2026, with a range of Rs 1,504.38 and Rs 1,634.63.
Currently, five brokerages have recommended BUY on Tata Motors ahead of its Q4 earnings. Chances are that most likely, the target ranges projected by Tata Motors may change after the earnings report.
At present, brokerages Prabhudas Lilladher and ICICI Direct have been set at Rs 1,075 and Rs 1,085. These are the short-term targets. While the 12-month target is set at Rs 1,178 by KR Choksey, and at the highest Rs 1,188 by Sharekhan. These brokerages recommend buying and Accumulating Tata Motors' share price.
Lastly, global leading brokerage CLSA continued to 'outperform' Tata Motors and recommended a target price of Rs 1,133.
Tata Motors Stock Splits:
Apart from Q4 results, investors will be looking for an update from Tata Motors on its demerger plan on May 10. The big event in Tata Motors as of now, is its plan for splitting in the ratio of 1:2.
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.
The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability, it said.
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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