KR Choksey has given Buy recommendation for Tata Motors with a target price of Rs. 630 in its research report issued on May 16, 2022

KR Choksey’s research report on Tata Motors

For Q4F2Y2, consolidated revenue de-grew by 11.5% YoY, JLR Revenue was down 27.1% and in FY22, revenues grew by 11.5% YoY. EBITDA for Q4FY22, declined by 35% YoY; OPM stood at 10.6%. For FY22, EBITDA de-grew by 19.1% and margins stood at 8.9%. Loss for Q4FY22 was INR 10,328 Mn v/s INR 76,054 Mn in the year-ago quarter. FY22, loss stood INR 1,14,415 Mn. JLR volumes were down 15% YoY; Domestic PV retails were up 44% YoY; EV Sales hit a new peak of INR 9,100 units, in Q4FY22. The company expects the global semiconductor shortage to continue through the next fiscal year with gradual improvement.


We expect the company will grow at CAGR of 18.0%/41.2% in revenues/EBITDA over FY22-24E. We apply a multiple of 19.25x (previously 15.2x) on FY24E revised EPS of INR 32.7 (earlier INR 42.3 per share) and keep our Target price to INR 630 (unchanged), implying an upside of 55.9% from the CMP 404. Accordingly, we maintain our “BUY” rating on the shares of Tata Motors.

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