© Reuters.
Tata Motors (NYSE:) Ltd is selling a 9.9% stake in its subsidiary, Tata Technologies, for ₹1,614 crore ($216 million), a move that values the subsidiary at ₹16,300 crore ($2.18 billion) and reduces Tata Motors’ holdings from 74.69%. This development led CLSA to raise its target price for Tata Motors by ₹26 to ₹803 ($10.75).
On Wednesday, CLSA also forecast stronger H1FY24 margins for Jaguar Land Rover (JLR), a subsidiary of Tata Motors. The firm predicts an EBIT margin of 8.3%, absolute EBIT of £1,161 million ($1.57 billion), and anticipates H2FY24 to be seasonally stronger. JLR’s wholesale and retail volumes have grown by 29% and 21% year-on-year, respectively.
The recently launched Tata Safari and Harrier facelifts sold 12,594 units in the June quarter, accounting for 8.8% of Tata Motors’ total passenger vehicle volume. The company’s electric vehicle (EV) variants of these models are expected next year, which are projected to increase Tata Motors’ SUV market share to 65.4% by FY25 and FY26, and overall passenger vehicle market share to 16.1% by FY26.
Furthermore, JLR is on track to achieve a free cash flow of £2 billion ($2.7 billion) in FY24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
