Buy Tata Motors, target price Rs 415: Motilal Oswal

Motilal Oswal has buy call on Tata Motors with a target price of Rs 415. The current market price of Tata Motors Ltd. is Rs 310.1.

Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 100771.34 Crore) operating in Auto sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 76365.79 Crore, up 40.99 % from last quarter Total Income of Rs 54163.22 Crore and up 5.22 % from last year same quarter Total Income of Rs 72576.20 Crore. Company reported net profit after tax of Rs 3222.21 Crore in latest quarter.


Investment Rationale
The stock trades at 7.9x FY23E consol. EPS and 1.5x P/B. The brokerage maintains Buy, with target price of INR415 (Mar’23 SOTP-based).

Promoter/FII Holdings
Promoters held 42.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 15.6 per cent, DIIs 12.7 per cent and public and others 29.3 per cent.