Buy Tata Motors, target price Rs 540: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Tata Motors with a target price of Rs 540. The current market price of Tata Motors is Rs 439.9.

Tata Motors, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 145638.58 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 89618.97 Crore, up 11.12 % from last quarter Total Income of Rs 80649.88 Crore and up 22.88 % from last year same quarter Total Income of Rs 72931.86 Crore. Company has reported net profit after tax of Rs 2939.78 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 31-12-2022, the company has a total of 332 Crore shares outstanding.

Investment Rationale
A strong recovery in JLR, sustained resurgence of the India business, and a possible monetization of its stake in Tata Technologies (possible value of INR 25-47/share for the company) are the key catalysts for the stock over next 12 months.

Promoter/FII Holdings
Promoters held 46.39 per cent stake in the company as of 31-Dec-2022, while FIIs owned 13.89 per cent, DIIs 15.07 per cent.