- Nomura India suggests an unchanged target price of Rs 1,057 on Tata Motors.
- Demerger into commercial vehicle (CV) and passenger vehicle (PV) businesses foreseen for greater strategic freedom.
- Medium-term potential for both CVs and PVs to pursue independent strategies.
- Nomura sees Tata Motors PV business as a key value creator with a focus on safety, design, and feature-rich vehicles.
- Aiming to become India’s second-largest PV player by FY25-26.
- Tata Motors leads EV penetration with 70%+ market share, plans for 10 EV models by FY26, and aspires to achieve 50% EV volumes by 2030.
- Despite negative EV margins in Q3, Nomura expects improvements over time, contributing to substantial value creation.
- Tata Motors’ PV business Ebitda margins at 6.5%, with ICE margins already improved to 9.4% in Q3FY24.
- Potential upside in CV business re-rating and success in e-Buses and e-LCVs.
- Demerger through the NCLT scheme with identical shareholding for existing Tata Motors shareholders.
- Expected timeline for completion is 12-15 months, subject to necessary approvals.
Tags
AutomotiveIndustry, BusinessDemerger, CVBusiness, Demerger, ElectricVehicles, EVLeadership, FinancialNews, FutureStrategies, IndianEconomy, InvestmentOpportunity, MarketInsights, MarketStrategy, NomuraIndia, PVBusiness, ShareholderValue, StockMarket, TargetPrice, Tata Motors Share Price Target, TataMotors, ValueCreation
About Author
Kuber Kashyap
Kuber Kashyap is a dedicated and passionate content creator, renowned for his insightful and compelling news coverage. With a keen eye for detail and a knack for storytelling, Kuber delves into various topics, ensuring our readers stay informed and entertained. His commitment to delivering accurate and timely news sets him apart in the ever-evolving landscape of digital journalism.
Leave a Reply