Key Points Of TATA Stock Buy:
- Tata Motors share price rose by over 6% and became the top gainer in the index on Jan 10, following CLSA’s upgrade to ‘buy’ tag.
- CLSA has increased the target price of Tata Motors to Rs 512 per share, over 23% above the current market price.
- The JLR margin profile is expected to improve with volume growth, and commercial vehicles and passenger vehicles margin is expected to rise due to lower commodity costs and price hikes, according to CLSA.
- Jaguar Land Rover reported an increase in wholesale volumes for Q3 FY23 on Jan 9, reflecting a gradual improvement in chip supplies.
- The order book comprises 74% of the New Range Rover, New Range Rover Sport, and Defender.
Details Of TATA Stock:
In the early trading hours of January 10, the share price of Tata Motors surged by over 6 percent, making it the top gainer in the index, after being upgraded by CLSA with a ‘buy’ tag. As per a report by CNBC-TV18, the global research firm has raised the target price to Rs 512 per share, which is more than 23 percent above the current market price.
According to the brokerage firm, the JLR margin profile is expected to improve due to volume growth, and the margin of commercial vehicles (CV) and passenger vehicles (PV) is also anticipated to increase due to lower commodity costs and price hikes. It stated that “Improvement in volume and margin profile to aid free cash generation in FY24”.
On January 9, Jaguar Land Rover, a wholly owned subsidiary of Tata Motors Limited, announced an increase in wholesale volumes for the third quarter of FY23, indicating a gradual improvement in chip supplies. The order book comprises 74 percent of the New Range Rover, New Range Rover Sport, and Defender.
About TATA Company:
(TATA) CLSA expects JLR margin profile to improve led by volume growth and for commercial vehicles (CV) and passenger vehicles (PV) business margin to improve on lower commodity costs and price hikes.
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