Tata Group Stock: Tata Group’s automotive business is ready to leap forward in 2024 following its status as the best performer in the Nifty benchmark index in 2023.
In light of the favorable outlook, a brokerage company has upgraded Tata Motors (NSE: TATAMOTORS). The company has made the change due to the better-than-expected margin prospects and the free cash flow (FCF) release in JLR.
The stock, which has more than doubled the value of investors’ funds over the past year, is part of Jhunjhunwala’s portfolio.
Tata Motors Will Touch Rs 925
The brokerage company has upgraded the rating of Tata Motors from ‘neutral’ to ‘overweight’. Additionally, the price of the target has been increased from Rs 689 to Rs 941 per share.
On the 3rd of January 2024, it cost was 781 rupees. So, the stock will earn returns of 18-19 percent over the current price. Its performance Tata Motors in 2023, was the best performer in the Nifty benchmark index.
Over the past calendar year, shareholders have received over 100 percent of their returns in shares. The money that investors have earned has doubled.
Tata Motors has been in the portfolio of Rakesh Jhunjhunwala, an experienced investor in the markets for quite a while. After he died in 2022 his spouse Rekha Jhunjhunwala managed the portfolio.
Based on the pattern of shareholding for the quarter ending September 20, 2023, Railkha Jhunjhunwala’s shareholding of Tata Motors is 1.6 percent (53,256,000 equity shares).
The value of the stake is approximately the amount of 4,161.7 crore.
What Is The Opinion Of The Brokerage?
The brokerage company says that JLR is likely to be able to generate better margins than they had expected. The company is expected to have an unconstrained cash flow.
The principal reason behind the stock’s revaluation is JLR’s growing margins. Luxury global OEMs JLR’s focus is profits, not volumes.
However, its market share in India is still strong. Despite the new products launched by competitors, the company’s sales are solid.
Deleveraging of the balance sheet is an important factor in stock price upgrades.
Deleveraging of the balance sheet will lower EPS volatility and may result in the re-rating. The brokerage has boosted FY25-26E’s EPS by 20-30%.
About Tata Motors Company
Tata Motors Limited (TML) is the world’s leading manufacturer of automobiles. It is a member of the Tata group, which was established by Jamsetji Tata in 1868.
It is one of India’s biggest Original Equipment Manufacturers (OEMs). It provides a wide range of smart, integrated, and e-mobility solutions.
It is a portfolio that includes a wide selection of trucks, sports utility vehicles buses, vehicles, as well as a variety of SUVs, cars buses, trucks, and pickups.
It is made up of four distinct segments that are reported as Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing and others consist of IT-related and insurance brokerage services.
Most of their revenues are made through India.
Fundamental Analysis of Tata Motors
| Market Cap | ₹ 2,91,274 Cr. |
| Current Price | ₹ 796 |
| 52-wk High | ₹ 804 |
| 52-wk Low | ₹ 381 |
| Stock P/E | 16.75 |
| Book Value | ₹ 161 |
| Dividend | 0.26 % |
| ROCE | 5.95 % |
| ROE | 5.62 % |
| Face Value | ₹ 2.00 |
| P/B Value | 4.94 |
| OPM | 12.7 % |
| EPS | ₹ 46.2 |
| Debt | ₹ 1,27,864 Cr. |
| Debt to Equity | 2.38 |
Tata Motors Shareholding Pattern
| Promoters Holding | |
| Sept 2022 | 46.40% |
| Dec 2022 | 46.39% |
| Mar 2023 | 46.39% |
| June 2023 | 46.39% |
| Sept 2023 | 46.38% |
| FII Holding | |
| Sept 2022 | 14.13% |
| Dec 2022 | 13.89% |
| Mar 2023 | 15.34% |
| June 2023 | 17.72% |
| Sept 2023 | 18.40% |
| DII Holding | |
| Sept 2022 | 14.75% |
| Dec 2022 | 15.21% |
| Mar 2023 | 17.69% |
| June 2023 | 17.38% |
| Sept 2023 | 17.37% |
| Govt. Holding | |
| Sept 2022 | 0.14% |
| Dec 2022 | 0.14% |
| Mar 2023 | 0.14% |
| June 2023 | 0.14% |
| Sept 2023 | 0.14% |
| Public Holding | |
| Sept 2022 | 24.58% |
| Dec 2022 | 24.36% |
| Mar 2023 | 20.41% |
| June 2023 | 18.38% |
| Sept 2023 | 17.70% |
Tata Motors Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 301,938 Cr |
| 2020 | ₹ 261,068 Cr |
| 2021 | ₹ 249,795 Cr |
| 2022 | ₹ 278,454 Cr |
| 2023 | ₹ 401,785 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ -28,724 Cr |
| 2020 | ₹ -11,975 Cr |
| 2021 | ₹ -13,395 Cr |
| 2022 | ₹ -11,309 Cr |
| 2023 | ₹ 15,672 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 1.51 |
| 2020 | 1.58 |
| 2021 | 2.08 |
| 2022 | 3.13 |
| 2023 | 2.77 |
Last 10 Years’ Profit Growth:
| 10 Years: | -13% |
| 5 Years: | -20% |
| 3 Years: | 31% |
| Current Year: | 269% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 5% |
| 5 Years: | -8% |
| 3 Years: | -7% |
| Last Year: | 6% |
Sales Growth Over 10 Years:
| 10 Years: | 6% |
| 5 Years: | 3% |
| 3 Years: | 10% |
| Current Year: | 33% |
Company’s Positive Signs:
- The company is expected to deliver an excellent quarter.
Company’s Negative Signs:
- The company’s stock prices are 4.92 times book value.
- This company has seen an insufficient growth of 3.48 percent over the past 5 years.
- This company is generating a low rate of equity return which is -7.15 percent in the last 3 years.
Conclusion
This article is a complete guide about Tata Motors Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
