Tata Motors On Record-high As Nomura Upgrades The Stock
Global brokerage firm assigns the target price of Rs 1,294 which indicates the upside potential of 26 per cent from the current market price (CMP)
The stocks of Tata Motors explored highest territory in the Thursday trading session to its record-high of Rs 1,084 after the global brokerage firm Nomura upgraded the stock with ‘buy’ recommendation citing multiple levers of growth.
Tata Motors stock traded at Rs 1,081 with 5.2 per cent gain in the afternoon session on the National Stock Exchange (NSE).
Global brokerage firm assigned the target price of Rs 1,294 which indicated the upside potential of 26 per cent from the current market price (CMP).
According to the Nomura value-unlocking catalysts include the demerger of commercial vehicles (CVs) from passenger vehicles (PV) and the possible large benefits from Jaguar Land Rover's (JLR) strategic execution.
The phase-out of Jaguar's internal combustion engines (ICE) and the success of new EVs are expected to drive the margin of India's largest EV player.
"Industry PV and EV demand has shown signs of weakness. But, launches of Curvv (scheduled on August 8) and Harrier EV in FY25 should support volumes," the brokerage stated in a recent note on the company.
Nomura stated, to rise from 7.8 per cent in FY25 to 8.5 per cent and further to 10.1 per cent by FY27, with the potential to reach 11 to 12 per cent by FY30. In addition, net debt of Rs 1,600 crore (or Rs 44 per share) in FY24 is anticipated to become net cash by FY26 and 27 of Rs 57 and Rs 140 per share.
The stocks of Tata Motors delivered 37.8 per cent return in the year 2024 so far which is at par with 36.9 per cent return in Nifty Auto Index year-to-date (YTD).
