📷 Image Credits: Moneycontrol
Tata Motors, the country’s largest EV player, has seen a significant rise in its share price, with brokerages maintaining a bullish stance on its growth prospects. The company recently announced plans to invest between Rs 16,000 crore and Rs 18,000 crore into its electric vehicle (EV) division until FY30, which has further fueled investor confidence.
Shares of Tata Motors rose nearly 2.3 percent to Rs 1,010 in early trade on June 12, continuing a fifth consecutive session of gains. Brokerages like Jefferies and Morgan Stanley have issued buy calls on Tata Motors, setting target prices ranging from Rs 1,100 to Rs 1,250 per share. These brokerages are impressed by the company’s focus on strengthening its brand and improving profitability across its passenger vehicles (PVs) and commercial vehicles (CVs) segments.
Furthermore, Tata Motors aims to increase its market share in PVs to 16 percent by FY27 and to 18-20 percent by FY30. The company also targets achieving a double-digit EBITDA margin in both its CV and PV segments, aiming to break even in its EV segment by FY26. Management is confident in achieving financial stability by becoming net debt-free by fiscal year 2025.
Analysts at Incred Equities have highlighted Tata Motors’ impressive return on capital employed (RoCE) in its commercial vehicle division, further cementing the positive outlook for the company. Although the demerger process may take some time to complete, there is a general preference for the CV business post-demerger.
Overall, the future looks promising for Tata Motors as it continues to focus on growth, profitability, and market share expansion. With a solid investment plan in place and a clear strategy for each business segment, Tata Motors is well-positioned to capitalize on the evolving landscape of the automotive industry.
