Buy Tata Motors, target price Rs 677: ICICI Securities

ICICI Securities has buy call on Tata Motors with a target price of Rs 677. The current market price of Tata Motors Ltd. is Rs 405.95. Time period given by analyst is one year when Tata Motors Ltd. price can reach defined target.

Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 134752.46 Crore) operating in Auto sector.

Tata Motors Ltd. key Products/Revenue Segments include Motor Vehicles, Spare Parts & Others, Miscellaneous Goods, Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 79341.61 Crore, up 8.79 % from last quarter Total Income of Rs 72931.86 Crore and down -11.17 % from last year same quarter Total Income of Rs 89319.34 Crore. Company reported net profit after tax of Rs -1099.32 Crore in latest quarter.

Investment Rationale
Continued market share gains in the domestic PV business, CV upcycle and delivery on FCF generation (aim is to be auto debt-free by FY24E) coupled with aggression in building the EV portfolio resonate well with investor expectations. For JLR, production recovery amidst 168k unit orderbook and low inventory levels amidst weak macros in target markets, would help it sail through the current tough times by growing on a benign base. The brokerage maintains BUY with a revised target price of Rs677 (earlier: Rs703).

Promoter/FII Holdings
Promoters held 46.4 per cent stake in the company as of 31-Mar-2022, while FIIs owned 14.45 per cent, DIIs 14.39 per cent.