Passenger cars and utility vehicles dominate the automotive market, with global sales exceeding 65 million units annually. Passenger cars account for over 55 million units, while utility vehicles, including SUVs and crossovers, surpass 10 million. This sector drives significant innovation and economic impact worldwide.
With a market capitalization of Rs 3.60 lakh crore, the shares of Tata Motors Ltd were trading at Rs 1,082.90 per share, increasing around 5.38 percent as compared to the previous closing price of Rs 1,027.65 apiece.
Financial analysis:-
Examining the financial performance of the company, revenue increased by 13 percent from Rs 105,932 crore in Q4FY23 to Rs 119,986 crore in Q4FY24. During the same period, net profit increased by 218 percent, from Rs 5,496 crore to Rs 17,529 crore.
Brokerage Target:-
Nomura, one of the well-known brokerages globally, gave a ‘Buy’ call on the auto stock with a target price of Rs 1,294 apiece, indicating a potential upside of 20 percent from Thursday’s price of Rs 1,082.90 per share.
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Rationals:-
As per the brokerage, one of the primary reasons behind their upgrade on Tata Motors is that Jaguar Land Rover’s (JLR) execution can lead to significant upsides. Additionally, the brokerage also said that Tata Motors proposed a demerger plan to separate its passenger vehicle (PV) and commercial vehicle (CV) business may unlock value for CVs.
Order book & June outlook:-
Tata Motors’ overall order book is robust at Rs 4.9 trillion; the particular order book data supplied is for JLR India, with the Range Rover, Range Rover Sport, and Defender models accounting for 75% of the entire order book in Q1 FY25.
Tata Motors’ outlook for June FY25 shows cautious optimism. Q1 FY25 sales increased to 229,891 units from 226,245 last year. MH&ICV sales rose 10%, while passenger vehicle sales dropped 8% to 43,524 units. Future demand is expected to improve, with a focus on SUVs and infrastructure projects.
Company profile:-
Tata Motors Limited is a multinational vehicle manufacturer. The company offers a varied portfolio, including automobiles, SUVs, trucks, buses, and defense vehicles. The company’s sectors include automotive and other activities.
Written by:- Abhishek Singh
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