Tata Motors share price: Buy Tata Motors, target price Rs 646: ICICI Securities

ICICI Securities bought a tender with a target price of Rs 646. Tata Motors’ current market price is Rs 500.4.

The period given by the analyst is one year when the price of Tata Motors Ltd. can achieve the defined goal.

Tata Motors Ltd., incorporated in 1945, is a large capitalization company (with a market capitalization of Rs 168,306.40 Crore) operating in the automotive sector.



The main product / revenue segments of Tata Motors Ltd. includes motor vehicles, spare and other parts, general merchandise, other operating income and sale of services for the year ending March 31, 2021.

Finance

For the quarter ended 30-06-2021, the company reported total consolidated income of Rs 66,988.05 crore, down -25.00% from last quarter total income of Rs 89,319.34 crore and in 105.55% increase over last year in the same quarter. Total income of Rs 32,589.59 crore. The company reported after-tax net profit of Rs -4,320.60 crore in the last quarter.

Justification of the investment
The brokerage believes that unlocking the EVCo value is broadly in line with the early stage valuation of pure global power companies (e.g. Nio / XPeng). The consumer-centric approach coupled with a structured aggression in electric vehicles with collaboration between partners (internal / external) is a unique proposition, remains difficult to reproduce for peers. The brokerage believes this pivot is likely to cause ICE to downgrade only Indian OEMs with no clear EV strategy / intention as the risk of transition is now much higher.

Promoter / FiI Holdings
Promoters held 46.41 percent of the company’s capital as of June 30, 2021, while FIIs held 14.28 percent and DIIs 11.48 percent.

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