Buy Tata Motors, target price Rs 400: Motilal Oswal

Motilal Oswal has buy call on Tata Motors with a target price of Rs 400. The current market price of Tata Motors Ltd. is Rs 293.45. Time period given by analyst is one year when Tata Motors price can reach defined target.
Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 97251.81 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 66988.05 Crore, down -25.00 % from last quarter Total Income of Rs 89319.34 Crore and up 105.55 % from last year same quarter Total Income of Rs 32589.59 Crore. Company reported net profit after tax of Rs -4320.60 Crore in latest quarter.

Investment Rationale
With softening of headwinds , TTMT would see the triple benefit of a) macro recovery, b) company-specific volume/margin drivers, and c) sharp improvement in FCF and leverage in the JLR and India businesses. The stock trades at 4.8x/2.9x EV/EBITDA of FY22/FY23E. Maintain Buy, with TP of ~INR400 (Mar’23E SoTP based).


Promoter/FII Holdings
Promoters held 51.8 per cent stake in the company as of June 30, 2021, while FIIs held 15.9 per cent, DIIs 13 per cent and public and others 19.3 per cent.