Jaguar Land Rover (JLR), the British luxury car subsidiary of Tata Motors said that it expects its net debt to fall below £1 billion by the next fiscal, due to its resilience against global headwinds, including the scarcity of chips, inflationary pressures, and geopolitical constraints.
JLR projected annual revenues of £ 28 billion in fiscal 2024 against £ 22.81 billion clocked a year ago, and a growing domestic business.
Amid positive sentiments, Tata Motors received a buy rating from Jefferies with a price target of ₹ 700.00 per share. This suggests an upside of 24.46% as compared to its closing price of ₹ 562.45 apiece on Tuesday. It expects good performance from both JLR and India businesses in FY24, driving strong earnings growth and deleveraging
In another development, JLR unveiled its partnership with Agratas, a battery cell manufacturing company recently launched by the Tata Group. This partnership will power JLR’s forthcoming electric vehicle lineup. A significant step towards securing the battery value chain for JLR’s planned electric vehicles has been taken with this agreement.
Tata Motors is a leading global automaker that offers a diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles across the globe. It has operations in countries including India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia.
With a market capitalization of ₹ 2,02,617 crores, Tata Motors is a large-cap blue chip company. It has a low return on equity of 5.37%. The company’s shares were trading at a price-to-earnings ratio (P/E) of 103.27, which is significantly higher than the industry P/E of 15.79, indicating that might be overvalued as compared to its peers.
The company’s promoters hold a 46.39% stake in it, followed by retail investors with 21.34%, foreign institutions with 15.34%, mutual funds with 8.98% and other domestic institutions with 7.95%.
Written By Simran Bafna
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