Tata Motors Ltd. share price target

Resurfaced chip availability concerns amid geopolitical issues Russia is the largest producer (~40% share in global production) of rare earth metal palladium, which is used in manufacturing of semiconductor. Further Ukraine is the largest producer of neon gas, which is another important component for semiconductor (chip) manufacturing. Therefore, any supply chain disruption of these critical raw materials in this space would impact the availability of chips, resulting in an adverse impact on OEM volumes and associated productivity. Rise in Brent crude to impact margins as well as demand...

EBITDA rose 67.0% QoQ, as EBITDA margin expanded 280bps QoQ to 9.4%. However, margins contracted 580bps YoY due to global semiconductor supply shortages, higher employee spends and R&D...

Tata Motors' consolidated performance surprised positively with EBITDA margin at 12.5% (+250bps QoQ). Chip supply issue at JLR seems to be easing out as production grew 41% QoQ and is expected to gradually improve over 2022. JLR order book stands at 155k units vs 125k units in 2Q. It focused on pending bookings of Range Rover (wholesales +30% QoQ) as deliveries of...

Tata Motors Q3 Results: Firm posts net loss of Rs 1,451 cr, misses estimates For the quarter ending Dec 2021 ,Consolidated net sales (including other operating income) of Tata Motors has declined 4.53% to Rs 72229.29 crore compared to quarter ended Dec 2020. Sales of Automotive and related activity segment has gone up 45.03% to Rs 22,320.93 crore (accounting for 30.78% of total sales). Sales of Others segment has gone up 56.33% to Rs 1,114.15 crore (accounting for 1.54% of total sales). Sales of vechicle financing segment has gone down 3.12% to Rs 1,181.62 crore (accounting for 1.63% of total sales). Sales of Jaguar and Land Rover segment has gone down 18.26% to Rs 47,891.71 crore (accounting for 66.05%...

Gradual recovery in semiconductor supplies leads to a cut in FY23E EPS TTMT's 3QFY22 performance was a mixed bag. JLR optimized its mix in a supply constrained environment, whereas commodity cost impacted India operations. While demand for JLR remains strong, the improvement in supplies is slower than our expectations. The India...

Tata Motors Q2FY22 results, Net sales up 14.66% , beats estimates For the quarter ending Sept 2021,Consolidated Net sales (including other operating income) of Tata Motors has increased 14.66% to Rs 61378.82 crore compared to quarter ended sept 2020. Sales of Others segment has gone up 46.47% to Rs 955.22 crore (accounting for 1.55% of total sales). Sales of Tata and Other brands vehicle segment rose 89.25% to Rs 19,505.21 crore (accounting for 31.63% of total sales). Sales of vechicle financing segment has gone up 16.27% to Rs 1,258.07 crore (accounting for 2.04% of total sales). Sales of Jaguar and Land Rover segment has gone down 4.31% to Rs 39,940.78 crore (accounting for 64.78% of total...

Consolidated revenue grew 14.7% YoY to Rs. 61,379cr in Q2FY22, as higher revenue from TML (standalone) more-than offset weak JLR operations. TML volumes were up 56.3% YoY to 171.8k vehicles, while JLR wholesale volume fell 12.8% YoY to 64.0k units and retail sales...

strong recovery/ traction in JLR/India businesses from 3QFY22E onwards. We have lowered our FY22E/FY23E EPS estimate by PTL/8% to account for the lost sales due to the ongoing semiconductor shortage as well as higher competitive intensity in the CV business. We maintain our Buy rating with a TP of INR565/share (Sep'23E SoTP-based). Mix dilutes operating deleverage impact; working capital hurts cash flows Consolidated revenue/EBITDA grew by ~15%/-29% YoY in 2QFY22 to INR614b/INR40.5b (est. INR606b/INR42b). Adjusted loss stood at...

Net Auto debt stands at Rs 644bn v/s Rs 409bn of FY21. Tata Motors' consolidated performance largely surprised on all fronts with revenue growing 15% YoY and margin merely contracting (10.1%) 95bps QoQ, protected through cost control measures. Though inventory at JLR is very thin (channel inventory of 27k units), the unit has strong order book of 125k units, of which 32k is for Defender. Retails are likely to pick up as and when...

Tata Motors (TTMT) has entered into a binding agreement with TPG Rise Climate (TPG) whereby TPG, along with its co-investor ADQ, shall invest Rs75bn in a new wholly-owned subsidiary (TML EVCo) at an equity value of up to US$9.1bn. We believe, the scale of capital investment plan (>Rs160 bn over next 5 years) coupled with ecosystem approach across Tata group (e.g. Tata Power, TCS, Tata Auto components, Tata Chemicals) is likely to accelerate EV penetration in India, thereby cause investors to pivot away from current ICE only PV OEMs.

demonstrates the future potential of the changing technology landscape in mobility. We value TML at a revised target price of | 515 on SOTP basis vs. | 450 earlier (15x, 3.3x FY23E EV/EBITDA on India, JLR businesses, respectively). We slightly revise India PV, JLR volume estimates and arrive at | 90/share value for EVCo assuming 15% stake sale @| 7,500 crore (conservatively) and 20% holding company discount. ICICI Securities Retail Equity Research...

India PV business posted decade-high quarterly sales of ~84,000 units in Q2FY22 despite ongoing semiconductor supply shortages. Domestic EV sales were higher than 1,000 units for second successive month in September 2021 driven by Nexon EV; 1,078 units for the month & 2,704...

Tata Motors Limited is India's largest CV and fourth-largest PV player.

EBITDA margin remained under pressure declining to 7.9% (as against 14.4% in Q4FY21) owing to higher input costs during the quarter. On the other hand, recovery could be seen in the bottom-line, as the reported net loss declined to Rs. 4,451cr (vs. Rs. 8,438cr loss in Q1FY21...

16.32%. Other direct service cost fell from 4.62% to 3.14%. Other income fell 4.11% to Rs 581.6 crore. Provision for interest rose 17.40% to Rs 2203.3 crore. Provision for depreciation rose 10.76% to Rs 6202.13 crore. Profit before tax grew 58.28% to Rs -2,581.16 crore. Share of profit/loss was 116.73% lower at Rs -129.52 crore. Extraordinary items were decreased to Rs 2.52 crore. Provision for tax was expense of Rs 1741.96 crore, compared to Rs 2200.49 crore. Effective tax rate was negative...

Tata Motors (TTMT) faced the double whammy of closure in the India business and a chip shortage in the JLR business in 1QFY22. The op. performance beat was driven by a favorable mix in both businesses....

Wholesales stood at 84,442 units (excluding China JV), up 72.6% YoY. However, this was ~30,000 units lower (~27%) than what otherwise would have been planned as a result of semiconductor supply constraints and the impact of COVID-19, although this reduction had been broadly anticipated. Based on recent inputs from suppliers, the chip supply shortages in 2Q are expected to be greater than that in 1QFY22, potentially resulting in ~50% lower wholesale volumes than planned. It expects the situation to start to improve in 2HFY22. Hence, it expects a negative FCF of ~GBP1b, with a...