Tata Technologies IPO, JLR Sales on Q4 Results: Why You Should Buy Tata Motors Shares – Explained
Tata Motors Stock: It has been around two months since Tata Technologies Ltd, a subsidiary of the Tata Group, submitted a draft Red Herring prospectus (DRHP) to launch its initial public offering (IPO). Tata Motors shares are trending up. Tata Group stock regularly hits a 52-week high. On Friday, the Indian auto giant announced its fourth-quarter results, which are better than expected for the company. The company has also presented promising numbers on JLR sales.
Tata Motors Stock: It has been around two months since Tata Technologies Ltd, a subsidiary of the Tata Group, submitted a draft Red Herring prospectus (DRHP) to launch its initial public offering (IPO). Tata Motors shares are trending up. Tata Group stock regularly hits a 52-week high. On Friday, the Indian auto giant announced its fourth-quarter results, which are better than expected for the company. The company has also presented promising numbers on JLR sales.
According to stock market experts, Tata Motors has emerged from Covid and the auto giant is poised for a major fundamental leap, and Tata Technologies’ IPO will play a big part in that. They said that before the Tata Technologies IPO starts, one should start accumulating Tata Motors shares because the public offering is 100 percent OFS, which means that the net proceeds of the public offering go to the shareholders’ balance sheet, selling their shares in Tata Technologies and Tata Motors is one of the shareholders who would sell their stakes in the IT company in this upcoming IPO.
According to stock market experts, Tata Motors has emerged from Covid and the auto giant is poised for a major fundamental leap, and Tata Technologies’ IPO will play a big part in that. They said that before the Tata Technologies IPO starts, one should start accumulating Tata Motors shares because the public offering is 100 percent OFS, which means that the net proceeds of the public offering go to the shareholders’ balance sheet, selling their shares in Tata Technologies and Tata Motors is one of the shareholders who would sell their stakes in the IT company in this upcoming IPO.
Tata Motors’ fourth-quarter results announced yesterday beat estimates for consolidated net income ₹5,407.79 crore in the fourth quarter of fiscal 23, versus a net loss of ₹1,032.84 crore in the same quarter of the last fiscal year. Compared to the previous quarter, the PAT recorded growth of almost 83 percent in the fourth quarter of FY23. The company’s sales performed strongly, with sales up more than 35 percent year-on-year.
Tata Motors’ fourth-quarter results announced yesterday beat estimates for consolidated net income ₹5,407.79 crore in the fourth quarter of fiscal 23, versus a net loss of ₹1,032.84 crore in the same quarter of the last fiscal year. Compared to the previous quarter, the PAT recorded growth of almost 83 percent in the fourth quarter of FY23. The company’s sales performed strongly, with sales up more than 35 percent year-on-year.
Commenting on Tata Motors’ Q4 results for the fourth quarter of 2023, Prabhudas Lilladher Research Analyst Himanshu Singh said: “Revenue was slightly below our estimate but ahead of the street estimate. EBITDA margins were broadly in line with our estimate and the street estimate. Depreciation was higher than expected during PAT.” benefited from deferred tax benefits. Overall good numbers as expected.”
Commenting on Tata Motors’ Q4 results for the fourth quarter of 2023, Prabhudas Lilladher Research Analyst Himanshu Singh said: “Revenue was slightly below our estimate but ahead of the street estimate. EBITDA margins were broadly in line with our estimate and the street estimate. Depreciation was higher than expected during PAT.” benefited from deferred tax benefits. Overall good numbers as expected.”
JLR Sales
“JLR expects incremental chip supply improvements to continue in FY24 and aims to grow wholesale through FY24 and achieve EBIT margins above 6 percent in FY24. Capital expenditure is expected to rise to around £3bn in FY24, with free cash flow “Net debt to fall to less than £2bn by FY2024,” said Prabhuda’s Lilladher expert.
JLR Sales
“JLR expects incremental chip supply improvements to continue in FY24 and aims to grow wholesale through FY24 and achieve EBIT margins above 6 percent in FY24. Capital expenditure is expected to rise to around £3bn in FY24, with free cash flow “Net debt to fall to less than £2bn by FY2024,” said Prabhuda’s Lilladher expert.
Prabhudas Lilladher’s Himanshu added that the backlog remained strong at 200,000 units despite increased retail sales. Range Rover, Range Rover Sport and Defender make up 76 percent of the book.
Prabhudas Lilladher’s Himanshu added that the backlog remained strong at 200,000 units despite increased retail sales. Range Rover, Range Rover Sport and Defender make up 76 percent of the book.
Tata Motors Ltd owns 74.69 per cent of Tata Technologies Ltd and has offered to sell 9.571 crore of Tata Technologies shares in this forthcoming IPO. On March 9, 2023, the IT company submitted a DRHP application to SEBI for the IPO.
Tata Motors Ltd owns 74.69 per cent of Tata Technologies Ltd and has offered to sell 9.571 crore of Tata Technologies shares in this forthcoming IPO. On March 9, 2023, the IT company submitted a DRHP application to SEBI for the IPO.
Avinash Gorakshkar, Research Director at Profitmart Securities, said that Tata Technologies’ IPO would be a game changer for Tata Motors: “According to the DRHP filed by Tata Technologies Ltd with SEBI, Tata Motors’ input cost per share is Tata Technologies.” ₹7.40 per share and if we look at the unlisted market hints we can expect the absolute value of Tata Motor’s investment in Tata Technologies to increase tremendously. Most importantly, this IPO would be fully OFS, meaning that the net proceeds from Tata Technologies’ IPO would be reflected on the balance sheet of Tata Motors and other shareholders and not on the balance sheet of Tata Technologies Ltd. flows. Therefore, the IPO is expected to streamline cash flow in the Indian auto sector giant and this is the reason for Tata Motors stock’s uptrend which is expected to continue further.
Avinash Gorakshkar, Research Director at Profitmart Securities, said that Tata Technologies’ IPO would be a game changer for Tata Motors: “According to the DRHP filed by Tata Technologies Ltd with SEBI, Tata Motors’ input cost per share is Tata Technologies.” ₹7.40 per share and looking at the unlisted market indicators we can expect the absolute value of Tata Motor’s investment in Tata Technologies to increase tremendously. Most importantly, this IPO would be fully OFS, meaning that the net proceeds from Tata Technologies’ IPO would be reflected on the balance sheet of Tata Motors and other shareholders and not on the balance sheet of Tata Technologies Ltd. flows. So, the IPO is expected to streamline cash flow in the Indian auto sector giant and this is the reason behind Tata Motors stock’s uptrend which is expected to continue further.
weakness of the US dollar
“Although the US dollar recovered from a one-month low last week, the US dollar outlook remains weak amid the US debt ceiling and as such FIIs are expected to continue buying the Indian equity market. As auto and banking are the most popular sectors.” “When it comes to foreign investors, we expect that Tata Motors will continue to attract foreign investors in the short and medium term,” said Avinash Gorakshkar.
weakness of the US dollar
“Although the US dollar recovered from a one-month low last week, the US dollar outlook remains weak amid the US debt ceiling and as such FIIs are expected to continue buying the Indian equity market. As auto and banking are the most popular sectors.” “When it comes to foreign investors, we expect that Tata Motors will continue to attract foreign investors in the short and medium term,” said Avinash Gorakshkar.
Current price target for Tata Motors shares
Prabhudas Lilladher’s Himanshu Singh said on the outlook for Tata Motors shares following strong fourth-quarter results and other developments, auto shares could rise to up to ₹rise to a level of 590 per share in the short to medium term.
Current price target for Tata Motors shares
Prabhudas Lilladher’s Himanshu Singh said on the outlook for Tata Motors shares following good fourth quarter results and other developments, auto shares could rise to up to ₹rise to a level of 590 per share in the short to medium term.
Disclaimer: The views and recommendations expressed above are provided by individual analysts or brokerage firms and not by Mint. We recommend investors to consult certified experts before making an investment decision.
Disclaimer: The views and recommendations expressed above are provided by individual analysts or brokerage firms and not by Mint. We recommend investors to consult certified experts before making an investment decision.
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