Rakesh Jhunjhunwala-owned Tata Motors share value could have restricted upside potential from right here on, mentioned analysts at Credit Suisse in a observe. The international brokerage and analysis agency added that Tata Motors has carried out properly within the home enterprise, gaining market shares in each PV and CV in India and has taken early management in EVs in India however sees the premium valuations and Jaguar Land Rover’s skill to compete within the EV area as a priority. Tata Motors’ share value has tumbled 12% to this point this yr after having skyrocketed near 145% in 2021. The inventory presently trades at Rs 452 per share.
Credit Suisse has pinned a goal value of Rs 474 per share on Tata Motors, leaving 5% upside potential from Tuesday’s opening value. “Tata Motors has performed well in the domestic business, gaining market shares in both PV and CV in India and has taken early leadership in EVs in India. However, premium valuations both in India and JLR and concerns on JLR’s ability to compete in BEVs over CY22 and CY23 without any new launches while peers have multiple new launches, keeps us Neutral on the stock,” Credit Suisse mentioned.
Jaguar Land Rover introduced its fourth-quarter efficiency just lately the place retail gross sales got here in at 79000 models, down 1.4% on-quarter and 36% on-year foundation. Wholesale volumes (ex-JV) got here in at 76500 models and manufacturing at 83000 models. “Wholesales was up 11% sequentially but down 38% on-year and was 4% below our revised estimate for the quarter 15% below our and consensus estimates for the fourth quarter from the beginning of the quarter,” mentioned Credit Suisse.
The brokerage agency added that losses continued at Jaguar Land Rover with general luxurious market share (throughout the US, EU and China) down 160bp from the earlier yr and 40bp on-quarter to five.5% within the fourth quarter. “Market share was down for the full year as well in each region, marking the third consecutive year of dips,” analysts mentioned. “While we would watch for any signs of demand moderation for JLR given the changing global macroeconomic conditions, watching for supply improvement remains key as there is a sizeable order backlog to help protect from any short-term demand hiccups,” they added. Jaguar Land Rover’s international retail orders now stand at 168,000 models.
Earlier right this moment, Tata Motors mentioned that international wholesales within the January-March interval, together with Jaguar Land Rover, have been at 3,34,884, up 2%, as in comparison with the year-ago interval. Global wholesales of all passenger autos, nevertheless, have been 4% decrease as in comparison with the earlier yr.
Ace investor Rakesh Jhunjhunwala owned a 1.18% stake in Tata Motors on the finish of December 2021, with 3.92 crore fairness shares. Often known as the Big Bull of Dalal Street, Rakesh Jhunjhunwala elevated his stake within the firm between the July-September quarter and the October-December quarter, shopping for 25 lakh shares. Rakesh Jhunjhunwala had bought the inventory in 2020 when the scrip had tanked owing to the Covid-19 pandemic. Shareholding sample for January-March quarter is but to be filed.
Source: www.financialexpress.com”
