Buy Tata Motors: target of Rs 365: Sharekhan
Sharekhan is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 365 in its research report dated February 22, 2021.
February 24, 2021 / 02:48 PM IST
Sharekhan's research report on Tata Motors
TAMO held an investor day conference, where management discussed about its product strategy, revenue drivers, and profitability expectations for commercial and passenger vehicle businesses. We expect TAMO’s earnings to become positive in FY2022E and 33.1% in FY2023E, driven by a 15.3% revenue CAGR during FY2021E-FY2023E and a 140 bps improvement in EBITDA margin. The stock trades at an attractive P/E multiple of 11.7x and EV/EBITDA multiple of 3.0x its FY2023E estimates.
We maintain our Buy rating on Tata Motors (TAMO) with a revised PT of Rs. 365, factoring better outlook for the domestic businesses, robust FCF for the standalone businesses, sharp fall in debt, and better earnings visibility.
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