Sharekhan has given Buy recommendation for Tata Motors with a target price of Rs. 610 in its research report issued on Jan 31, 2022
Sharekhan’s research report on Tata Motors
Tata Motors’ (TAMO’s) Q3FY22 results were ahead of expectations, led by JLR’s strong operational performance through a favourable product mix and cutting costs. TAMO’s overall performance and FCF is expected to improve gradually, driven by a positive business outlook, new launches, easing chips shortage situation, and favourable macro outlook. Management maintains its long-term targets. TAMO to become earnings’ positive in FY2023E with a PAT of Rs 11,708 crore, driven by a 16.7% revenue CAGR during FY2021E-FY2023E and a 120 bps improvement in EBITDA margin to 13.4% in FY23E from 12.2% in FY21.
We maintain a Buy on TAMO with an unchanged PT of Rs.610, driven by an expected recovery in volumes and operational improvement across its business verticals and geographies.