Buy Tata Motors: target of Rs 430: Sharekhan
Sharekhan is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 430 in its research report dated July 26, 2021.
July 27, 2021 / 11:36 AM IST
Sharekhan's research report on Tata Motors
Q1FY22 results were weak, as indicated by the management earlier this month, due to chips shortage impacting JLR business and lockdown restrictions, impacting CV and PV businesses. Stock trades at an attractive P/E multiple of 8.9x and EV/EBITDA multiple of 2.9x its FY2023E estimates. We expect all-round improvement in Tata Motors’business and expect earnings to turn positive in FY2022 and rise by 69.1% in FY2023E, driven by a 16.7% CAGR in revenue during FY2021-FY2023E and a 130 bps rise in EBITDA margin.
We maintain a Buy on Tata Motors with an unchanged PT of Rs. 430, as we expect the company will deliver strong operational performance from H2FY22 onwards, across its business divisions.
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