Buy Tata Motors, target price Rs 530: Emkay Global

Emkay Global has buy call on Tata Motors with a target price of Rs 530. The current market price of Tata Motors is Rs 403.6. Time period given by analyst is one year when its price can reach defined target.

Tata Motors, incorporated in the year 1945, is a large cap company (having a market cap of Rs 135327.18 crore) operating in auto sector.

Its key products/revenue segments include motor vehicles, spare parts & others, miscellaneous goods, sale of services and other operating Revenue for the year ended March 31, 2022.


Financials
For the quarter ended June 30, 2022, the company has reported a consolidated total income of Rs 72822.02 crore, down -8.22 per cent from last quarter total income of Rs 79341.61 crore and up 8.71 per cent from last year same quarter total income of Rs 66988.05 crore. Company has reported net profit after tax of Rs -4987.01 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 30-06-2022, the company has a total of 332 Crore shares outstanding.

Investment rationale
The brokerage retains their constructive view on TTMT, led by expectations of volume upturn in both standalone/JLR divisions, aggressive cost savings, and debt reduction. They have a Buy rating on the stock with a TP of Rs530.

Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of 30-Jun-2022, while FIIs owned 13.71 per cent, DIIs 15.18 per cent.