Buy Tata Motors; target of Rs 989: KR Choksey

KR Choksey is bullish on Tata Motors has recommended buy rating on the stock with a target price of Rs 989 in its research report dated November 11, 2024.

Broker Research

November 12, 2024 / 10:06 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Tata Motors

In Q2FY25, TTMT revenue stood at INR 1,014,500 Mn, declined by 3.5% YoY (-6.1% QoQ), berating our estimates by 2.8%. Total volume declined by 11.0% YoY (-7.7% QoQ), mainly due to subdued demand and inventory related issues. EBITDA stood at INR 117,360 Mn, down 14.5% YoY (-24.3% QoQ) that underperformed our estimates, mainly due to higher-than-expected operating expenses. The reported EBITDA margin decreased by 149 bps YoY reaching 11.6%. We lower our CV segment EV/EBITDA multiple to 12x (earlier: 14x) due to subdued demand in the CV segment and maintain the rest of the segment multiple. We expect JLR's H2FY25E recovery to meet FY25E guidance, while TML focuses on sustaining profitability in PV and CV, developing an in-house EV battery plant, and positioning for future hydrogen growth.

Outlook

Consequently, we have revised our target price to INR 989/share (previously: INR 1,156). With an 22.9% upside potential, we upgrade our rating on Tata Motors shares to “BUY” from "ACCUMULATE.”

For all recommendations report, click here