Tata Motors shares hit a fresh 52-week high of Rs 576.55 on NSE today. The stock has been in an uptrend, having rallied more than 13% in the last one month. Analysts see a further upside of up to 14% in the auto stock
At Tata Motors’ analyst meet, the management suggested a likelihood of a double-digit EBITDA margin and positive free cash flows (FCFs) in personal vehicle (PV) and commercial vehicle (CV) segments over the medium-term, in addition to positive EBITDA in e-PVs
Tata Motors is looking to incur an annual capex spends of up to Rs 2,500 crore per annum in CVs and up to Rs 3,000 crore in PVs. The management is expecting an EV capex of $2 billion till FY27. It also has a target of near-zero consolidated net-automotive debt for March 2025
Post the Analyst Day meet, most brokerages are positive on Tata Motors stock, with their price targets ranging from Rs 600 to Rs 655, suggesting up to 14% potential upside over Wednesday's closing of Rs 567.95 on NSE. Nuvama Institutional Equities has raised its target on the stock to Rs 645 from Rs 620 earlier
According to analysts at Nuvama, continuation of a cyclical upturn in JLR and domestic PVs/CVs, healthy product pipeline, improving order-book in JLR, increasing focus on EVs, margin expansion, cost-cutting measures, and reduction in leverage on account of robust FCFs are some of the key tailwinds for Tata Motors stock
Brokerage firm Motilal Oswal said Tata Motors should witness a healthy recovery as supply-side issues ease for JLR and commodity headwinds stabilise for the India business. The auto major will benefit from the CV upcycle and stable growth in PVs, company-specific volume/margin drivers, sharp improvement in FCF, as well as a reduction in net debt in both JLR and the India business. Motilal Oswal has a target of Rs 650 on the stock
Nomura India has a share price target of Rs 610 for the stock. "Having Gen-2 EV models (EV first + ICE) in the portfolio could offer a competitive advantage if battery costs remain high for dedicated EV platforms," it said. In the CV segment, the strategy to lower discounts and focus on value-selling can lead to further Ebitda margin improvement for the industry, Nomura added
While JM Financial has a target of Rs 615 on Tata Motors stock, CLSA has a target of Rs 624 on the stock. Meanwhile, Morgan Stanley finds the stock worth Rs 617, and Goldman Sachs has put a target price of Rs 600 on the stock. Kotak Institutional Equities, however, has a different view on the stock, as it lowered the target price to Rs 530
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