I-Sec upgrades Tata Motors to BUY, target price Rs 831

ICICI Securities has upgraded Tata Motors to BUY (from ADD earlier) with an unchanged target price of Rs 831.The current market price of Tata Motors is Rs 668.45. Tata Motors, incorporated in 1945, is a Large Cap company with a market cap of Rs 246009.58 crore, operating in the 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-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 115365.00 crore, up 11.99% from last quarter Total Income of Rs 103016.00 crore and up 2.93% from last year same quarter Total Income of Rs 112075.94 crore. The company has reported net profit after tax of Rs 5616.00 crore in the latest quarter.

The company?s top management includes Mr.N Chandrasekaran, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Bharat Puri, Mr.N Chandrasekaran, Mr.Girish Wagh, Ms.Hanne Sorensen, Ms.Vedika Bhandarkar, Mr.Kosaraju V Chowdary, Mr.Al-Noor Ramji, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Al-Noor Ramji, Mr.Kosaraju V Chowdary, Ms.Vedika Bhandarkar, Mr.Girish Wagh, Ms.Hanne Sorensen, Ms.Vedika Bhandarkar, Mr.Kosaraju V Chowdary, Mr.Al-Noor Ramji, Mrs.Usha Sangwan, Mr.Om Prakash Bhatt, Mr.Bharat Puri, Mr.N Chandrasekaran, Mr.Girish Wagh, Ms.Hanne Sorensen, Mr.Bharat Puri. Company has BSR & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 368 crore shares outstanding.

Investment Rationale
For its JLR business, the US continues to do well alongside recovery green shoots in the EU market. Tata Motors maintained its EBIT margin guidance of 10% for Q4FY25. In its India PV business, the company has planned multiple launches across powertrains, including Sierra and Harrier, and a repositioning of Curvv and Altroz. In its India CV business, Tata Motors is focusing on overhauling its SCV business by tending to key issues. With its recent stock price correction, ICICI Securities upgraded Tata Motors to BUY (from Add) with a SoTP-based unchanged target price of Rs 831, implying 11x/2.4x FY27E India/JLR EV/EBITDA.

Promoter/FII Holdings
Promoters held 42.58 per cent stake in the company as of 31-Dec-2024, while FIIs owned 18.66 per cent, DIIs 16.48 per cent.