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Buy This Automobile Stock For 20% Returns Motilal Oswal Says

Buy This Automobile Stock For 20% Returns Motilal Oswal Says
Written by bobby
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Buy This Automobile Stock For 20% Returns Motilal Oswal Says

Target Price

The Current Market Price (CMP) of Tata Motors is Rs. 507. Motilal Oswal has estimated a Target Price for the stock at Rs. 610. Hence this company is expected to give a 20% return, in 1 year.

Stock Outlook
Current Market Price (CMP) Rs. 507
Target Price Rs. 610
1-year returns 20.00%

Company performance

Tata Motor’s net sales were Rs. 2,498 b in FY 21, which is expected to grow to Rs. 3,032 b in FY 22. The company’s EBITDA stood at Rs. 357.8 b, which is expected to grow to Rs. 371.1 b. Additionally, the company’s adj. PAT stood at Rs. 2.2 b, which is expected to grow to Rs. -20.9 b. This company’s chip shortage improves QoQ. However, Jaguar Land Rover’s 3QFY22 wholesale volumes (excluding CJLR JV) declined 33% YoY (+9% QoQ) to 69.2k units. The wholesale volumes of Range Rover, Range Rover Sport, and I-Pace grew 92%, 64%, and 34.5% QoQ, respectively.

Comments by Motilal Oswal

Motilal Oswal commented, “TTMT’s all three businesses are in recovery mode. While the India CV business would see cyclical recovery, the domestic PV business is in a structural recovery mode. JLR is also witnessing a cyclical recovery underpinned by a favorable product mix; however, supply-side headwinds will defer the recovery process. While there would be no near-term catalysts from the JLR business, the India business (~50% of SOTP) would see sustained revival.” The total order book of the company has expanded to over 154k units in 3QFY22.

About the company

Tata Motors Limited, a US & dollar;35 billion organization, is a leading automobile manufacturer with a portfolio that includes a wide range of cars, utility vehicles, trucks, buses, and defense vehicles. Our marque can be found on and off-road in over 125 countries around the globe. To achieve this target, we have established top-of-the-line manufacturing, R&D, and design facilities in more than 25 sites across India, Europe, China, the UK, and North America.

About the author

bobby

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