Motilal Oswal's research report on Tata Motors
We interacted with the management of Tata Motors (TTMT) to get an update on the demand scenario, the state of the global supply chain, JLR’s path to sustainable growth, and the outlook for its India CV/PV businesses. For JLR, supplies are gradually improving and demand is healthy. As supplies improve, JLR should reach near the zero net debt level by FY25, aided by improved production, better margins and working capital release. JLR will structurally continue its journey from being a premium brand to a premium luxury brand by focusing on its brand pull strategy and redefining Jaguar with premium positioning in the era of EVs with new launches starting from CY25. While its India businesses are already on a sustainable growth path, JLR is turning the corner and would be the key driver of the stock.
Further, the monetization of its stake in Tata Technologies (possible value of INR25-47/share for TTMT) could also act as a catalyst for the stock. Maintain BUY with a TP of INR540 (Mar’25E based SOTP).
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