1:2 Split Soon, 3,052% Returns: Purchase Tata Motor Stock Before Q4; Business Signs Significant Agreement Before Split

Tata Motors, the 79-year-old automotive behemoth of the Tata Group, will be the center of attention on Tuesday after the signing of a Memorandum of Understanding (MoU) with South Indian Bank to provide easy financing options to its dealerships and customers for commercial vehicles. Tata Motors will be under scrutiny as May draws closer due to its Q4 earnings and dividend proposals. Tata Motors has resisted up to the Rs 1,000 threshold so far.

However, Tata Motors’ short-term goals are to reach Rs 1028.48, Rs 1,075, and Rs 1,085 by Q4. If the major driver comes from the Q4 results, it will be closely observed.

The market capitalization of Tata Motors, which is valued at Rs 3,32,390.52 crore, was slightly higher on Monday at Rs 1,000.05 per share on the NSE. The stock’s 52-week high and low are, respectively, Rs 474.55 and Rs 1,065.60.

Tata Motors’ stock price increased 26.5% year over year, 108% in a year, and around 377.5% over five years. Tata Motors has made astounding all-time gains of 3,051.75%. On January 1, 1999, the stock price was just Rs 31.73 per share.

In a recent move, Tata Motors said that it has inked a Memorandum of Understanding (MoU) with South Indian Bank to provide dealers and consumers of its commercial vehicles with easy financing options. Financing will be available for all commercial vehicle models via South Indian Bank, and clients will take advantage of the bank’s extensive network and carefully chosen simple repayment schedules.

Through the cooperation, dealerships will get improved assistance, expansion will be encouraged, collateral requirements will be minimized, lending rates will be lowered, and credit processing will be streamlined.

P R Seshadri, South Indian Bank’s MD and CEO, Our goal at South Indian Bank is to provide fleet owners and dealerships with a safe, responsive, and exciting banking experience. We are able to provide commercial vehicle dealers and consumers with smooth car finance options because of our partnership with Tata Motors. We have no doubt that our collaboration with Tata Motors will provide best-in-class financing options, creating a new standard for excellence in the sector.”

In the meantime, Rajesh Kaul, Vice President & Business Head – Trucks at Tata Motors Commercial Vehicles, stated: “We are thrilled to announce our collaboration with South Indian Bank, a reputable bank that is cognizant of our clients’ requirements. One of the top goals for our clients’ businesses is having simple access to financing options for their commercial cars. Our partnership is to enable dealerships and fleet owners to meet their objectives. We are eager to provide our esteemed clients and partners more ease and assistance.”

To meet the changing demands of the logistics and mass mobility sectors, Tata Motors provides a wide variety of sub-1-tonne to 55-tonne cargo vehicles and 10-seater to 51-seater mass mobility solutions. These vehicles vary in small commercial vehicles and pickup, truck, and bus segments. The organization guarantees unmatched quality and service dedication by means of its vast network of over 2500 touchpoints, staffed by skilled professionals and supported by convenient availability of Tata Genuine Parts.

The target price of Tata Motors

The consensus suggestion is based on 29 expert recommendations, according to Trendlyne data. At the moment, everyone seems to suggest holding. Twelve experts in all have advised a strong buy of Tata Motors shares, nine have just advised BUY, and four have advised keeping the shares. The others advise selling and hard selling.

According to Trendlyne’s research, Tata Motors Ltd. (75) is tied with Maruti Suzuki India Ltd. and two other companies for the second-highest Durability score among its peers, behind Force Motors Ltd. (95).

According to consensus estimates, Tata Motors’ net income is predicted to increase by 741.0% in FY24, while its earnings per share is predicted to expand by 1673.5%.

As a result, the average 1-year target is at Rs 1028.48 each, suggesting a near-term upside of up to 3%. Brokerages such as ICICI Direct and Prabhudas Lilladher have advised Accumulate and BUY for the short-term targets of Rs 1,085 and Rs 1,075 respectively.

ICICI and Prabhudas’ goal will be the next height!

The split ratio for Tata Motors is fixed at 1:2.

The demerger of the corporation into two distinct listed companies, one housing the Commercial Vehicles business and its connected investments and the other housing the Passenger Vehicles businesses, including PV, EV, and JLR, and their related investments in another entity, has been authorized by the Tata Motors board.

Notice: The market experts who have made the following suggestions do not represent Greynium Information Technologies or the author. If judgments were made based on this article, neither Greynium nor the brokerage company, the author, would be held responsible for any resulting damages. Before making any financial decisions, consumers are advised by Goodreturns.in to speak with qualified professionals.