Tata Motors Share Price: The volatility in Tata Group's automobile giant continues sharply with the stock price ending last week's sessions down by 3%. In six months, the heavyweight stock has plunged by 20%. Currently, the stock is below Rs 800 and just Rs 95 away from hitting its 52-week low. Tata Motors has announced a price hike for its commercial vehicles from January 2025. Additionally, the biggest development is Tata Motors' demerger ratio of 1:2. That being said, is there a buying opportunity in this Tata stock?
Tata Motors Share Price:
On December 13th trade, Tata Motors stock ended at Rs 790.60 apiece, up by 0.6% w, ith maa market cap of Rs 2,91,029.73 crore on BSE. The stock has plunged by% from its 52-week high of Rs 1,179.05 apiece, while it is Rs 94.7 away from hitting its 52-week low of Rs 695.90 apiece. From its low, the stock is up by 14% notably.
Despite sharp correction in Tata Motors, the stock's return of equity is strong in automobile sector to 30.57%. YTD, the stock's performance is flat.
Tata Motors Price Hike:
Last week, on December 12, the company announced a price hike of approximately 2% across its trucks and buses portfolio which is part of its commercial vehicle segment. The price increase will come into effect from 1st January 2025.
In its regulatory filing, Tata Motors said, the price increase is to offset the rise in input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of trucks and buses.
Tata Motors Sales Data:
In November 2024, Tata Motors reported sales of 74,753 vehicles, compared to 74,172 units during November 2023. Total sales for MH&ICV Domestic & International Business in November 2024, including trucks and buses, stood at 13,230 units compared to 12,895 units in November 2023. Further, total passenger vehicles sales stood at 47,117 units, up by 2% from its sales of 46,143 units in November 2023.
On the performance, Arete Securities said, "the company saw a modest 1% YoY growth in overall sales, a performance that was overshadowed by its CV segment, which experienced a 2% YoY decline after a quarter of positive MoM growth, despite management's expectations of a recovery in H2FY25. As we shift focus to the CV segment, the sole bright spot was Passenger Carriers, which surged by 42%/7% on YoY/MoM basis. Moving on to the PV segment, it grew by a flat 2% both overall and domestically, but the export side took a hit, dropping 25% YoY and a staggering 82% MoM. Finally, in the EV space, sales grew by 9% YoY, though the potential threat of market share loss to competitors looms.
Tata Motors Demerger:
The auto player is set to split in the ratio of 1:2. 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.
Buy Tata Motors Stock?
As per Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. EPS is expected to reduce by 28.6% in FY25. The average 1-year target price is at Rs 965.40 apiece, which signals at 22% potential upside.
Notably, Mirae Asset Sharekhan has recommended BUY on Tata Motors for a target price of Rs 1,099. While brokerage Nuvama has suggested BUY for a target price of Rs 990.
About Tata Motors:
Part of the USD 165 billion Tata group, Tata Motors Limited, a USD 44 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. With 'Connecting Aspirations' at the core of its brand promise, Tata Motors is India's market leader in commercial vehicles and ranks among the top three in the passenger vehicles market.
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