1:2 Split Soon: Prior to splitting, Tata’s 79-year-old auto giant rose 3,013%; the target price range was Rs 1,300–1,500

The 79-year-old automotive behemoth Tata Motors, backed by the Tata Group, is getting closer to the Rs 1,000 share price. Tata Motors’ Q4 results, dividend recommendations, and the company’s update on the 1:2 split are the main events that will likely influence investor sentiment going forward. Five brokerages have suggested buying, with Rs 1,188 as the maximum goal. Nonetheless, Tata Motors is expected to make between Rs. 1,200 and Rs. 1,600 in the following two years.

The price of a share of Tata Motors increased by 1.5% on April 23 to close at Rs 987.75. The stock has a 52-week high and low of Rs 468.30 and Rs 1,065.60 per share, respectively. Tata Motors’ adjusted price-to-equity share is 16.14x.

Tata Motors’ stock has risen 25% year to date. With gains of an astounding 108% in only a single year, the stock has more than quadrupled investors’ money. Tata Motors has provided enormous long-term returns over the last five years, totaling 358%, and its all-time gains on the NSE to date are almost 3,012.98%. On January 1, 1999, the stock was only trading at Rs 31.73 a share.

Tata Motors’ Most Recent Major Declaration:
Tata Motors is expected to spend $1 billion to expand its production facilities at the new factory in Tamil Nadu, according to a Reuters report. With an emphasis on creating its premium automotive brand, Jaguar Land Rover (JLR), this will be increased.

Tata Motors Earnings: On May 10, the company plans to release its Q4 financial results and dividend information. At the next 79th Annual General Meeting of the Company, Tata Motors intends to propose dividends, if any, on the Ordinary Shares and ‘A’ Ordinary Shares of the Company for the financial year ending March 31, 2024, for the approval of the shareholders. The Tata Motors DVR will benefit greatly from this as well.

Target Prices for Tata Motors:
Tata Motors, a pillar of India’s automotive sector, is heading towards an electrified future with its concentration on electric vehicles (EVs), alongside its traditional stronghold in passenger and commercial cars, according to a LinkedIn post made by Raj Kumar, the creator of WeInvestSmart.com, last month. The company’s portfolio gains a premium advantage from its strategic ownership of luxury brands, Land Rover and Jaguar. Tata Motors is negotiating the possibilities and challenges of the global automotive environment, with over 75 years of innovation and quality in its history.

According to him, the target share price for Tata Motors is expected to be Rs 1,004, with a range of Rs 962.80 to Rs 1,046.16 for 2024. However, the estimated goal increases to Rs 1,255 in 2025, falling between Rs 1,203.50 and Rs 1,307.70. Furthermore, he claims that in 2026, the goal will rise to Rs 1,569, with a range of Rs 1,504.38 to Rs 1,634.63.

As of right now, five brokerages advise buying Tata Motors ahead of the company’s Q4 reports. The goal ranges that Tata Motors has stated are probably subject to alter after the results are released.

The current prices for the brokerages Prabhudas Lilladher and ICICI Direct are Rs. 1,075 and Rs. 1,085, respectively. These are the immediate goals. Sharekhan has the maximum 12-month objective at Rs 1,188 and KR Choksey sets it at Rs 1,178. These brokerages advise purchasing and building up the value of Tata Motors’ stock.

Finally, the world’s top brokerage CLSA suggested a target price of Rs 1,133, continuing to “outperform” Tata Motors.

Tata Motors Stock Splits: On May 10, investors will be expecting an update from Tata Motors about its demerger strategy, in addition to the company’s Q4 results. Right now, Tata Motors’ proposal to divide into two equal halves is the major news.

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.

According to the statement, the demerger is a natural next step after the subsidiarization of the PV and EV companies earlier in 2022. It will provide the aforementioned businesses with more freedom to follow their own development objectives with more agility and responsibility.