Sharekhan has given Buy recommendation for Tata Motors with a target price of Rs. 430 in its research report issued on Jul 07, 2021

Sharekhan’s research report on Tata Motors

We expect all-round improvement in Tata Motors’ business and expect earnings to turn positive in FY2022 and rise by 69.1% in FY2023E, driven by a 16.7% CAGR in revenue during FY2021-FY2023E and a 130 bps improvement in EBITDA margin. Management stated that shortage of semiconductor chips would be a near-term concern, but remained positive on product delivery, new launches and capex programs as planned earlier. Stock trades at an attractive P/E multiple of 9.6x and EV/EBITDA multiple of 2.9x its FY2023E estimates.


We maintain a Buy on Tata Motors with an unchanged PT of Rs. 430, factoring improvement in operational performance across businesses and robust FCF generation, led by turnaround in domestic business and a positive outlook for JLR business.