Motilal Oswal has given Buy recommendation for Tata Motors recommended buy rating on the stock with a target price of Rs 520 in its research with a target price of Rs. 520 in its research report issued on Jul 28, 2022
Motilal Oswal’s research report on Tata Motors
TTMT’s 1QFY23 performance saw a sharp miss due to several headwinds at JLR (mix, cost inflation, and hedge revaluation), though the India business delivered a strong performance. Given the improvement in semiconductor supplies and strong order book at JLR, there is hope of JLR making good on the pain of 1QFY23. The India business should benefit from a continued demand recovery in CVs and production ramp-up in PVs. Considering the high fixed cost nature of JLR business, an improvement in production at JLR is the biggest factor to watch out for, followed by mix. We cut our FY23 consolidated EBITDA estimate by 5% due to the impact of a weak mix in JLR in 1Q. Forex losses and higher tax in JLR resulted in a 62% cut in our consolidated FY23 EPS. We have largely maintained our FY24 estimates.
We maintain our Buy rating with a TP of INR520 per share (Jun’24E SoTP based).