Shares of Tata Motors climbed 8 per cent on the Tata group stock
brokerages turned positive on the Tata group stock, following the automaker's global wholesales data.
April 10, 2023: Shares of Tata Motors climbed 8 per cent in Monday's trade, as a host of brokerages turned positive on the Tata group stock, following the automaker's global wholesales data. In a press release, Tata Motors said its global wholesales, including Jaguar Land Rover, rose 8 per cent YoY to 3,61,361 units in the March quarter.
"All three businesses of Tata Motors are in a recovery mode. While the India CV business will see a cyclical recovery, the India PV business is seeing a structural recovery. JLR is also witnessing a cyclical recovery, supported by a favourable product mix. However, supply-side issues will delay the recovery process. While there will be no near-term catalysts from the JLR business, the recovery in the India business will continue," Motilal Oswal Securities said in a note.
Motilal Oswal Securities said the stock trades at 16.9 times its estimated FY24 consolidated EPS and 13.7 times its estimated FY25 consolidated EPS. The brokerage has a 'Buy' rating on the stock with a target of Rs 525.
Tata Motors said global wholesales of passenger vehicles stood at 1,35,654 units in the March quarter, up 10 per cent YoY. Global wholesales for Jaguar Land Rover came in at 1,07,386 vehicles (including CJLR volumes of 12,737 units). Jaguar wholesales for the quarter were 15,499 vehicles, while Land Rover wholesales for the quarter were 91,887 vehicles, Tata Motors said in th press release.
Following the development, Goldman Sachs raised its price target on the scrip to Rs 550 from Rs 480 earlier, as it factored in an improving volume outlook at JLR.
Tata Motors shares rose 7.62 per cent to hit a high of Rs 470.90. Nomura India has a target of Rs 508 on the stock. CLSA finds the stock worth Rs 544. JPMorgan has target of Rs 438 on the scrip while BofA Securities sees the stock at Rs 475.
Tata Motors said global wholesales of all commercial vehicles and Tata Daewoo range stood at 1,18,321 units in the March quarter, down 3 per cent YoY.
Earlier, Tata Motors said its domestic CV volume stood at 45,307 units, up 2 per cent YoY for March, led by better MHCV sales, while LCV sales dipped YoY. PV grew 4 per cent YoY to 44,044 units, in line with industry growth. Overall exports decelerated 39 per cent YoY. EV sales accounted for 15 per cent of overall PV volume in March at 6,509 units. For FY23, PV sales grew 46 per cent YoY while CV was up 22 per cent, led by higher growth for MHCV at 35 per cent while LCV was up 10 per cent YoY.
"For Tata Motors, this was the consecutive fourth month when it reported MoM increase in EV sales and now its monthly EV volume surpassed 6,500 units. In March 2023 TML sold 65,09 electric cars compared to 5,318 units in February 2023," Sharekhan said in a April 3 note.
Source : businesstoday