In the last week, Tata Motors' marketcap fell by Rs 11,217.35 crore, while Eicher Motors' marketcap was down by Rs 1,618.57 crore and Bajaj Auto's marketcap down by Rs 567.16 crore
Tata Motors' market capitalisation (marketcap) fell below that of Bajaj Auto and Eicher Motors on the back of more than 12 percent fall in the share price during the week ended June 29 amid concerns over auto tariff threat by the United States.
As on June 29, the marketcap of Tata Motors stood at Rs 77,756.30 crore, which is lower than Eicher Motors (marketcap Rs 77,844.03 crore) and Bajaj Auto (marketcap Rs 81,345.41 crore).
In the last week, Tata Motors' marketcap fell by Rs 11,217.35 crore, while Eicher Motors' marketcap was down by Rs 1,618.57 crore and Bajaj Auto's marketcap down by Rs 567.16 crore.
On the other hand, Tata Motors-owned Jaguar Land Rover (JLR) has guided to £4.5 billion capex between FY19-21 and 12-13 percent of sales post FY21. In the long term, the company plans to use a large part of the capex on products (51 percent) followed by technology (22 percent) and remaining on capacity expansion and others.
JLR has laid down its strategy that focuses on new models launch, cost efficiencies and improving financial performance.Meanwhile, on June 22, US President Donald Trump threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all US imports of
European Union-assembled cars.
ICICIdirect has maintained buy rating on the stock with a 12-month target of Rs 355.
The company is implementing a turnaround strategy in its standalone business. JLR’s huge investment in FY19-21 will result in negative cash flow remaining a near-term concern.
We believe JLR is making right moves in terms of future strategies. We value the stock on an SOTP basis, with JLR (ex-China JV) at 2.5x EV/EBITDA basis contributing Rs 202 per share while the domestic business contributes Rs 86 per share, it added.On Friday, Tata Motors ended at Rs 269.30, up Rs 5.40, or 2.05 percent on the BSE.The Great Diwali Discount!
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