Tata Motors share value: Purchase Tata Motors, goal value Rs 500: ICICI Direct


ICICI Direct has purchase name on Tata Motors with a goal value of Rs 500. The present market value of . is Rs 436.4. Time interval given by analyst is one yr when Ltd. value can attain outlined goal.

Tata Motors Ltd., integrated within the yr 1945, is a Giant Cap firm (having a market cap of Rs 144249.56 Crore) working in Auto sector.

Tata Motors Ltd. key Merchandise/Income Segments embody Motor Autos, Spare Elements & Others, Miscellaneous Items, Different Working Income and Sale of providers for the yr ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the corporate reported a Consolidated Complete Revenue of Rs 79341.61 Crore, up 8.79 % from final quarter Complete Revenue of Rs 72931.86 Crore and down -11.17 % from final yr identical quarter Complete Revenue of Rs 89319.34 Crore. Firm reported internet revenue after tax of Rs -1099.32 Crore in newest quarter.

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Funding Rationale
Tata Motors’ Q4FY22 outcomes have been a beat on estimates. The important thing constructive shock was 220 bps sequential soar in EBITDA margins at 14.7%, largely attributable to operational outperformance in any respect the important thing divisions particularly India CV, PV in addition to abroad JLR. Notably, it additionally guided for lowering internet automotive debt (~|48,700 crore) to close zero ranges by FY24E via inside FCF technology & sale of non core property. The brokerage likes Tata Motors for its continued EV alertness in India via ideas & actual launches (PV market chief with Nexon; plans to introduce 10 fashions by 2025) and JLR (Jaguar all-electric by 2025; 6 BEVs in Land Rover in subsequent 5 years). Going ahead, on the again of wholesome demand prospects and robust order guide, it expects wholesome 13.2% income CAGR over FY22-24E backed by 15.8% whole quantity CAGR. Margins are seen at 14.3% in FY24E together with RoCE at ~13.7%. It retains BUY ranking with an SoTP primarily based revised goal value of Rs 500/share



Promoter/FII Holdings
Promoters held 46.4 per cent stake within the firm as of 31-Mar-2022, whereas FIIs owned 14.45 per cent, DIIs 14.39 per cent.

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