Moneycontrol PRO

Buy Tata Motors; target of Rs 530: Emkay Global Financial

Emkay Global Financial is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 530 in its research report dated July 28, 2022.

July 29, 2022 / 05:04 PM IST
Rama Steel Tubes: Nomura Singapore buys 1 lakh shares in Rama Steel Tubes. Nomura Singapore bought 1 lakh equity shares in the company via open market transactions on June 15. These shares were acquired at an average price of Rs 371 per share.

Rama Steel Tubes: Nomura Singapore buys 1 lakh shares in Rama Steel Tubes. Nomura Singapore bought 1 lakh equity shares in the company via open market transactions on June 15. These shares were acquired at an average price of Rs 371 per share.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Emkay Global Financial Market's research report on Tata Motors


For Q1FY23, Tata Motors’ consolidated EBITDA declined by 64% qoq to Rs32bn, 58% below our estimates, due to commodity hedging losses and adverse mix at JLR. Revenue declined by 8% to Rs719bn, 3% below our estimates, because of realization miss at JLR due to lower-than-expected sales of RR/RR Sport. JLR’s order book is strong at ~200,000 units. Models such as Defender and newgeneration RR/RR Sport form ~65% of order bookings, which should lead to product-mix improvement going ahead. Chip supplies are expected to improve in a staggered manner going ahead. We expect a 15% volume CAGR over FY22-24E. We estimate FY22-24E India CV/PV volume CAGRs of 16%/28%, driven by continued upcycle in industry sales and better chip supplies. The focus remains on E-PVs, with medium-term investments of US$2bn toward new products, capacity expansion, localization, and charging infrastructure.



Outlook


We reduce FY23E consolidated EPS by 9%, factoring weak Q1 results, and FY24E EPS by 7% due to lower volume assumptions of JLR. We reaffirm Buy with an SOTP-based TP of Rs530 (unchanged), based on Sep’24E (June’24E earlier) estimates.

Close

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Tata Motors - 280722 - emkay

Broker Research
first published: Jul 29, 2022 05:04 pm
Sections
ISO 27001 - BSI Assurance Mark