171.45 -0.60 (-0.35%)
NSENov 25, 2020 03:31 PM
The 30 reports from 11 analysts offering long term price targets for Tata Motors Ltd. have an average target of 168.43. The consensus estimate represents a downside of -1.76% from the last price of 171.45.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-11-11||Tata Motors Ltd.||HDFC Securities||150.95||175.00||150.95 (13.58%)||Target met||Buy|
The loss-making India PV business has turned the corner and reported a positive margin, driven by robust market share gains. This will improve domestic cash flows and make the PV business more attractive for potential partners We upgrade Tata Motors to BUY (ADD earlier) as the OEM will benefit from an improving demand outlook, cost-cutting initiatives, and better FCF generation. JLRs retail volumes are improving from COVID lows, and system inventories are normalising. We are building in double-digit volume growth at JLR over FY22/23E (12/11%). The luxury OEM has turned FCF positive (+GBP 463m in 2Q), a trend which we expect would sustain over FY22/23E.
|2020-11-03||Tata Motors Ltd.||SMC online||139.00||139.00 (23.35%)|
Tata Motors records loss of Rs 314 cr in July-Sept quarter, misses' estimates Net sales during the quarter declined 18.4% year-on-year (YoY) to Rs 52,839.02 crore. Finance costs increased by Rs 114 crore to Rs 1,950 crore during Q2 FY21 compared with the prior year due to higher gross borrowings as compared to Q2 FY20....
|2020-10-28||Tata Motors Ltd.||Prabhudas Lilladhar||132.65||146.00||132.65 (29.25%)||Target met||Hold|
Domestic CV and PV outlook positive for 2HFY21. TTMT's 2QFY21 results were a mixed set with JLR margins at 11.1% (PLe 9%, -230bp YoY) while S/A margins at 2.9% (PLe 5%). JLR is seeing better volume recovery post Covid in key markets like UK and China with retail sales improving to 113.6k units in 2Q (v/s 74.1k units in 1Q). However, key overhang such as no deal Brexit, increasing covid cases in European markets and emission compliance norms continue to persist. Any favorable outcome from...
|2020-10-28||Tata Motors Ltd.||Axis Direct||134.80||150.00||134.80 (27.19%)||Target met||Buy|
|2020-10-28||Tata Motors Ltd.||ICICI Securities Limited||134.80||165.00||134.80 (27.19%)||Target met||Buy|
ICICI Securities Limited
The company is preparing for deal' (base case) as well as no-deal' Brexit outcome. Increase in production stock (in UK, Slovakia) and stock of aftermarket parts are expected to help mitigate enhanced procedural complexity. A no-deal outcome would lead to tariffs on UK-EU trade but a weaker Pound Sterling would offset some of the damage. On the controllables side, however, Project Charge+ continues to deliver, with 0.6 savings in the quarter taking total savings this year to 1.8 billion with 0.7 million remaining to be achieved now. A similar India programme also...
|2020-10-28||Tata Motors Ltd.||Motilal Oswal||134.80||230.00||134.80 (27.19%)||34.15||Buy|
2QFY21 marked initial signs of volume recovery, the benefit of mix, and costcutting initiatives coming together. This coupled with normalcy in working capital as well as tight control on capex resulted in FCF turning positive. JLR's near-term volumes may be at risk from a potential second wave of COVID. However, mix improvement and tight cost/capex control would drive sharp improvement in operating performance and debt reduction. We upgrade our FY22E EPS by 13% to factor in lower tax in JLR (reversal of deferred tax). Maintain Buy, with TP of INR230 (Sep'22 SOTP)....
|2020-10-06||Tata Motors Ltd.||Ventura||135.90||135.90 (26.16%)||Strategy Note|
|2020-10-05||Tata Motors Ltd.||Axis Direct||133.90||150.00||133.90 (28.04%)||Target met||Buy|
|2020-09-10||Tata Motors Ltd.||Motilal Oswal||144.30||227.00||144.30 (18.81%)||32.40||Buy|
10 September 2020 business-level FCF generation, b) the monetization of non-core assets, and c) top-up equity (if required). revenue improvement, b) cost-cutting, and c) capex control plans laid out for four key businesses (incl. Capex plans laid out for FY21 (GBP2.5b for JLR and INR15b for the India business) would not see any material change in the foreseeable future. As the monetization of non-core assets begins with the Tata Technologies and Hitachi JV (construction equipment), it would look at other assets as well. However, currently it has no plans to monetize its stake in Tata Sons. The partnership between the PV segment and JLR is not the key part of its deleveraging strategy. Demand recovery is visible across markets in the US, UK, EU, and China. Only RoW markets are yet to see recovery. JLR is seeing an additional boost from strong demand for the recently launched Evoque and Defender.
|2020-08-27||Tata Motors Ltd.||ICICI Securities Limited||144.25||160.00||144.25 (18.86%)||Target met||Buy|
ICICI Securities Limited
Media reports suggest that the top management of Tata Motors (TML) at its recent AGM expressed an intent to reduce automotive debt (~| 48,000 crore as of FY20) to near zero levels in the next three years. This follows the recent guidance of turning JLR, Indian operations sustainably FCF positive (from FY22E, FY21E respectively). While the intent is encouraging, we remain slightly circumspect about the deleveraging timeline, given that positive FCF from FY22E will continue to be accompanied by critical capex for new product development and new age technologies i.e. ACES. As per our...
|2020-08-07||Tata Motors Ltd.||Geojit BNP Paribas||131.15||119.00||131.15 (30.73%)||Target met||Hold|
Geojit BNP Paribas
Early signs of recovery in sales can be seen from July onwards, however the near-term performance expected to remain bleak. Maintaining a cautious outlook, we reiterate our HOLD rating on the stock with a revised target price of Rs. 119 based on SOTP valuation methodology....
|2020-08-06||Tata Motors Ltd.||SMC online||119.10||119.10 (43.95%)||Results Update|
and retailer shutdowns for major part of the quarter and heavily impacted the volumes. Negative operating leverage impacted the performance significantly. The auto major reported a pre tax loss of Rs 6,183.73 in Q1 June 2020 as against pre tax loss of Rs 3,238.18 crore in Q1 June 2019. Total tax expense stood at Rs 2,200.49 crore in Q1 June...
|2020-08-03||Tata Motors Ltd.||ICICI Securities Limited||113.05||115.00||113.05 (51.66%)||Target met||Hold|
ICICI Securities Limited
JLR's Q1FY21 negative FCF (1.2 billion) was 500 million better than previous guidance (included 1.1 billion in working capital outflows expected to reverse as production ramps up) while India negative FCF of | 4,300 crore was lower than guidance by | 700 crore. Amid ongoing focus on costs, capex, both businesses committed to turning FCF positive (JLR from FY22E in sustainable manner, standalone from FY21E) while also reducing debt levels from FY22E onwards. However, outlook on volume growth remains clouded by the evolving pandemic situation in different...
|2020-08-02||Tata Motors Ltd.||Prabhudas Lilladhar||119.10||108.00||119.10 (43.95%)||Target met||Hold|
China JLR turned EBIT positive at 0.4% (post 8 quarters of EBIT loss). TTMT's 1QFY21 consolidated EBITDA exceeded expectations beating JLR performance led by cost savings and better realizations. JLR margins came in at 3.5% (PLe -13%). With China stabilizing post COVID and improvement in other global markets, JLR can see gradual volume recovery. Consistent delivery on cost savings (Project charge savings of GBP4.7bn till date and...
|2020-08-01||Tata Motors Ltd.||Motilal Oswal||104.65||127.00||104.65 (63.83%)||Target met||Buy|
1 August 2020 TTMTs had its toughest quarter ever with net consol losses of INR84b as both JLR and India business were badly hurt by Covid-19 related lockdowns. (auto) FCF being negative at ~INR182b. However, it expects positive FCF in both businesses 2QFY21 onwards. Recovery in both businesses is critical for net debt reduction (INR678b, increase of INR196b QoQ). We expect losses to gradually reduce in coming quarters and turn profitable only from 4QFY21. We have lowered our FY21E loss estimates by 8% to factor in faster JLR volume recovery and cost cutting initiatives. adverse mix and higher fixed cost led to the fourth consecutive quarter of EBITDA loss (~INR7b v/s est. The beat was led by 10% YoY increase in realizations (due to higher spare contribution) and cost savings of INR5.4b. JLR Project Charge delivered total savings of GBP1.2b (cost savings of GBP0.
|2020-07-11||Tata Motors Ltd.||Motilal Oswal||108.00||126.00||108.00 (58.75%)||Target met||Buy|
11 July 2020 Automobiles Jaguar Land Rover (JLR)s wholesale volumes declined 44.8% YoY to ~65.4k ~15% YoY at ~16.5k units. JLRs 1QFY21 retail sales declined ~42% YoY to ~74k, with LR decreasing ~38% and Jaguar ~52.5%. Jun20 retail sales fell ~25% YoY to 35.3k. This was the first month of retail for many markets, such as the UK. In Jun20, China (-7.4% YoY) and North America (+2.2% YoY) were particularly encouraging.
|2020-06-22||Tata Motors Ltd.||HDFC Securities||104.40||112.00||104.40 (64.22%)||Target met||Accumulate|
As stock valuations at below FY20 book value (0.8x) are factoring in a challenging environment; we reinstate coverage with an ADD rating. Amidst the COVID backdrop, Tata Motors management is focused on conserving capital by aggressively scaling back capex spends in FY21E (by over 30%) as well as seeking a strategic partner for the loss-making India passenger car business. As the business normalises at JLR/India, the cash flows are expected to improve over CY21E (led by working capital reduction).
|2020-06-16||Tata Motors Ltd.||ICICI Securities Limited||94.75||90.00||94.75 (80.95%)||-47.51||Hold|
ICICI Securities Limited
JLR's FCF position continues to improve (up 563 million YoY to -722 million). Cost, profit and cash improvement plan Project Charge' has delivered results well ahead of schedule (Exhibit 4), delivering 3.5 billion in savings by FY20 instead of the originally planned 2.5 billion. Now termed Charge+', TML aims to achieve further 1.5 billion savings by FY21E (half of these being non-recurring and structural). The company has also initiated a similar | 6,000 crore plan in India (includes | 3,000 crore of planned capex reduction). Also, JLR capex has been revised downwards by 40% to 2.5...
|2020-06-16||Tata Motors Ltd.||Prabhudas Lilladhar||95.40||87.00||95.40 (79.72%)||-49.26||Hold|
JLR bets on China's recovery and healthy response to the new Defender. TTMT 4QFY20 performance was operationally weak with S/A margins at -4.4% (PLe -3.3%), JLR margins at 4.8% (PLe 7%) and consol margins at 3.8% (PLe 6%). The miss in JLR margin was led by negative operating leverage and weak...
|2020-06-16||Tata Motors Ltd.||Motilal Oswal||94.75||122.00||94.75 (80.95%)||Target met||Buy|
We lower our FY21/FY22 EBITDA by -18%/0% to factor weakness in volumes in both businesses and higher interest cost, resulting in PAT loss in both the years. adverse mix, and higher fixed cost led to a third quarter of EBITDA loss of We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business. While TTMTs India CV business is on a strong footing, the India PV business particularly would be severely challenged during such uncertain times as customers prefer proven Over the last three years, JLR had suffered from adverse product (growth led by Jaguar), market mix (decline in Chinas contribution), and increase in capex, resulting in negative FCFF in FY1820. We lower our FY21/FY22 EBITDA by 18%/0% to factor near-term volume weakness, Fx movement, and the impact of COVID-19 on cost structures in both JLR and the India business.