Reduce Tata Motors, target price Rs 398: HDFC Securities

HDFC Securities has reduce call on Tata Motors with a target price of Rs 398. The current market price of Tata Motors Ltd. is Rs 430.5. 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 144183.14 Crore) operating in Auto sector.

Tata Motors Ltd. 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 31-03-2022, 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
JLR expected to post marginal EBIT loss due to adverse mix and impact from chip shortage; CV segment margins to decline QoQ on rising input costs

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.