Buy Tata Motors, target price Rs 500: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Tata Motors with a target price of Rs 500. The current market price of Tata Motors is Rs 394.1.

Tata Motors, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 130754.67 Crore) operating in Auto sector.

Tata Motors key Products/Revenue Segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Sale of services and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 80649.88 Crore, up 10.75 % from last quarter Total Income of Rs 72822.02 Crore and up 29.57 % from last year same quarter Total Income of Rs 62245.73 Crore. Company has reported net profit after tax of Rs -1004.07 Crore in latest quarter.

The company’s top management includes Mr.Ratan N Tata, Ms.Vedika Bhandarkar, Ms.Hanne Sorensen, Mr.Om Prakash Bhatt, Mr.Kosaraju V Chowdary, Mr.Thierry Bollor�, Mr.Al-Noor Ramji, Mr.Guenter Butschek, Mr.N Chandrasekaran, Mr.Girish Wagh. Company has BSR & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 332 Crore shares outstanding.

Investment Rationale
Overall, the brokerage estimates a 32% growth in total volumes for FY23E, implying a 7%residual growth, or a monthly run-rate of ~86k units. The stock trades at 7.2x FY23E/4x FY24E EV/EBITDA.

Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of 30-Sep-2022, while FIIs owned 13.71 per cent, DIIs 14.61 per cent.