Tata Group-backed automobile player, Tata Motors will be in focus this week as its share price will turn ex-dividend on June 11. Last week, the stock gained by nearly 3% overall on BSE. While its year-to-date upside is about 23%. Tata Motors is set to deliver a 300% dividend on ordinary shares, and a 310% dividend on its DVR shares. Accordingly, Tata Motors DVR will also be in focus.
Tata Motors, Tata Motors DVR Share Price:
On BSE, Tata Motors' share price stood at Rs 970.40 apiece, as of June 7, 2024, with a market cap of Rs 3,22,558.91 crore. The stock's 52-week high and low is at Rs 1,065.60 apiece and Rs 557.15 apiece respectively.
Meanwhile, Tata Motors DVR share price stood at Rs 651 apiece, up by 4% on BSE with a market cap of Rs 33,103.54 crore on June 7. Tata Motors DVR is listed on both BSE and NSE. However, Tata Motors DVR has no brokerage coverage, zero buy or sell rating, and it does not have any fundamentals such as profits or revenue. Tata Motors DVR is simply riding on the wagon of Tata Motors. So, the DVR is more prone to the sentiment that revolves around Tata Motors' share price.
Tata Motors Dividend:
Tata Motors and Tata Motors DVR share prices will turn ex-dividend on June 11. This is also the record date to determine eligible shareholders for the dividend payout.
The auto player has announced 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. The payment of this will be done on or before June 28, 2024.
This dividend payout in nearly 14 years. In 2023, the company paid dividends of Rs 2 per share on its ordinary stocks. The highest dividend payout was in 2011 at Rs 20 per share.
Tata Motors 1:2 Split:
Tata Motors' share prices will be split into two as the company will be demerging between commercial vehicles to passenger vehicles business.
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.
BUY Tata Motors share price:
Brokerage Julius Bar is the latest to like Tata Motors' share price. In its report, the brokerage said, "The auto industry, both domestically and globally, is showing improving trends, led by a pick-up in demand, new product launches and easing of supply-chain challenges."
Julius' note added, "TM is expected to see steady performance in both JLR/SA, driven by cyclical recovery, new launches/refreshes (including EVs), better mix, cost-cutting initiatives, and deleveraging. It recently announced the demerger of its CV and PV business into two separately listed entities to better capitalise on growth opportunities. We see the recent softness in the stock as an opportunity and upgrade TM to Buy with a SOTP-based target of INR 1,050."
Apart from Julius, Prabhudas Lilladher has also suggested BUY for an upside target of Rs 1,110 with a stop loss of Rs 917. The outlook comes after observing that Tata Motors has been underperforming for quite some time and the charts are looking attractive and risk-reward favourable.
Meanwhile, brokerages like KR Choksey have suggested ACCUMULATE the stock for a target of Rs 1,043, while Geojit advises to HOLD the stock for a Rs 1,049 target. ICICI Direct also recommends holding Tata Motors stock for Rs 1,120 target. However, the highest target price is Rs 1,235 with a BUY recommendation set by Sharekhan.
Recently, Tata Motors launched a much-awaited premium hatchback in a sporty avatar, Altroz Racer. As per the statement, the performance aspect of the Altroz goes several notches higher with the introduction of the 1.2 L Turbo petrol engine. Elevated with the race car-inspired exterior and interior look coupled with a power of 120 Ps @ 5500 rpm and torque of 170 Nm @ 1750 to 4000 rpm, this sporty evolution of the Altroz promises an experience of pure exhilaration with every drive.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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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