On Thursday the large-cap company rose 2.6 percent to its intraday high of Rs 801.8 per share from the previous close of Rs 781.45 after JP Morgan upgraded the company’s target price.
JP Morgan upgraded Tata Motors from Hold to Buy raising its price target to Rs 925 per share which is 16 percent higher than the current market price of Rs 795.
According to JP Morgan, Jaguar Land Rover’s higher-than-expected margins and free cash flow boosted confidence. Tata Motors had a 14.4% market share in passenger vehicles, outperforming competitors.
Lowering debt will stabilize earnings and may result in re-rating. Demand across segments is expected to improve as a result of government infrastructure spending, a positive economic outlook, and company initiatives.
Tata Motors, net revenue increased by 32 percent year over year, from Rs 79,611 crore in Q2FY23 to Rs 105,128 crore in Q2FY24. Their revenue also rose 2.8 percent sequentially from Rs 102,236 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 526 percent year over year, from a net loss of Rs 898 crores in Q2FY23 to a net profit of Rs 3,832 crores in Q2FY24. Their profit increased by 16 percent on a quarterly basis from Rs 3,301 crore in Q1FY24 to the current levels.
Tata Motor Ltd has a market capitalization of Rs 2,91,000 crores, and the share price of the company rose by 105 percent in the last year. For example, if an investor invested Rs 1 lakh a year ago the current value of the investment would be Rs 2.05 Lakhs.
The company promoter owns 46.38 percent of the company, the general public owns 17.70 percent, foreign institutional investors own 18.40 percent, and domestic institutional investors own 17.52 percent.
Tata Motors Group is a world-class automobile manufacturer. As a subsidiary of the illustrious Tata group, it provides the world with a diverse portfolio of automobiles, sport utility vehicles, trucks, buses, and defense vehicles.
Written by Sriram KV
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