Here is why Tata Motors share price is big trend today - Stock investors should know this about target levels
Tata Motors share price today is Rs 348.8, up Rs 14 or 4.1%. The market cap of Tata Motors is 1.16 lk cr. The 52 week low on Tata Motors is Rs 92 and 52 week high is Rs 357. Foreign Brokerage Nomura said that Tesla's loss may be Tata Motors JLR gain in China. Tesla’s vehicle orders fell by 45% from 18,000 in Apr-21 to 9,800 in May-21. Tata Motors share price is the Top Gainer on Nifty today
Share price of Tata Motors is up by Rs 14 or 4.1% at Rs 348.8 today. The market cap of Tata Motors is 1.16 lakh crores. Tata Motors' 52-week low is Rs 92 and 52-week high is Rs 357. Foreign brokerage Nomura said Tesla's loss could be Tata Motors JLR's gain in China. Tesla's vehicle orders fell 45% from 18,000 in April-21 to 9,800 in May-21. Tata Motors share price is the top gainer on Nifty today.
Market analyst Simi Bhowmick said that Tata Motors can go from Rs 390 to Rs 400 and from here it can also see Rs 450 in 3 to 4 months. The stock should be bought on all downsides with a stop-loss of Rs.320.
Sharekhan has placed Buy rating on Tata Motors with a revised price target of Rs 430, which is important for improving operating performance across businesses, positive outlook for JLR and domestic businesses and strong FCF (Free Cash Flow) generation. falling into debt Tata Motors beat expectations in Q4FY21, driven by strong all-round operating performance, with overall adjusted PAT growing 72.5% qoq, driven by 17% revenue growth and 11% EBITDA growth. Consolidated revenue grew 41.8% year-over-year, driven by 44% year-over-year growth in JLR volumes and 90% growth in domestic volumes (CVs and PVs).
Tata Motors consolidated EBITDA margin for Q4FY21 was 14.4%, expanding 1060 bps, driven by 1430 bps improvement in standalone business (Commercial Vehicles EBITDA 9.1% and PV EBITDA 4.9%) by 6.9% and 910 bps improvement in JLR . Turnover at 15.3%. The company has written off the one-time extraordinary charges of Rs.14994 crore for the redesign strategy of JLR, as indicated earlier during the JLR Investor Day. Tata Motors generated strong free cash flow during FY21 and reduced its net auto debt from Rs 7300 crore to Rs 40,900 crore. Tata Motors defers fundraising plans for another AGM.
Sharekhan said Tata Motors' management continues to meet its financial targets for JLR, which has improved revenues by GBP 30 billion, EBIT margins of 10 per cent and sustainable investments of GBP 3 billion by FY26. The company is concerned about supply issues in India in the near future due to Covid Wave-2 and shortage of chips globally. However, the company expects the lack of chips in the H2FY22 to improve. Further, management remains positive on the domestic PV and CV businesses in the medium term, though management highlighted near-term challenges of COVID Wave-2.
Sharekhan said it remains positive on Tata Motors' operating performance and expects it to turn positive earnings in FY2022E and 37.7% yoy in FY2023E, with 16.7% revenue CAGR and 130 bps improvement in EBITDA margin during FY2021E-FY2023E 13.5 % Will be done. FY23E from 12.2% in FY21. Sharekhan retains buy rating on Tata Motors.
Key positives of Tata Motors:
Strong improvement in consolidated EBITDA margins, in line with management commentary over the past few quarters, JLR's Q4FY21 EBITDA margin was 15.3%, while the CV and PV businesses were up 9.1% and 4.9%, respectively. Š
There was a significant decline in net auto loans to Rs 40900 crore at the end of FY21 from Rs 7300 crore at the end of FY21 due to strong FCF generation
Tata Motors Major Negatives:
During Q4FY21, Tata Motors wrote off one-time extraordinary charges of Rs.14994 crore for the redesign strategy of JLR.
The Tata Motors management highlighted that the COVID-19 lockdown in India and worldwide semiconductor shortage will impact supplies in the near term
Tata Motors Key Risks:
Tata Motors' business is dependent on cyclical industries like CV and PV
In addition, Tata Motors' business is present across the globe. Any slowdown or cyclical slowdown at any location where the company has a strong presence can affect its business and profitability.