Sharekhan's research report on Tata Motors
Tata Motors’ (TAMO) Q1FY23 results lagged our expectations, largely due to poor performance of JLR business, marred by unfavourable volume mix. Performance of CV and PV businesses was broadly in-line with expectations. Overall performance and FCF are expected to improve gradually, driven by a positive business outlook, new launches, easing chips shortage situation, cooling commodity prices, and favourable macro-economic outlook. Management maintains its long-term targets with a caution on inflation and geopolitical situations. TAMO’s focus on EVs continues to grow multifold in Q1FY23; electric CVs are getting ready for the next leg of growth.
We maintain Buy with an unchanged PT of Rs. 516, driven by expected recovery in volumes and operational improvement across its business verticals and geographies.
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