ICICI Direct has given Buy recommendation for Tata Motors with a target price of Rs. 500 in its research report issued on May 13, 2022

ICICI Direct’s research report on Tata Motors

Tata Motors (TML) is an auto OEM from the house of Tatas, operating in domestic (PV, CV) as well as global markets (Jaguar Land Rover i.e. JLR) • JLR is a luxury car brand, which includes two prominent names i.e. Jaguar (models like I-pace, etc.) & Land Rover (models like Defender, Evoque, etc) • FY22 consolidated sales mix– JLR ~67%, India CV ~19%, India PV ~11%.


We retain BUY on positive demand outlook, impressive margin & FCF targets for FY23E and intent to be net debt free (automotive) by FY24E. We now value TML at Rs 500 on SOTP basis (10x, 3x FY24E EV/EBITDA on India, JLR; ₹160 value to Indian EV business; earlier TP ₹ 550).

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