Upcoming 1:2 Split: Three Major Announcements From Tata Group’s 79-Year-Old Auto Company; Rs 2,000 Is The Next Target On Stock

The massive automaker Tata Group, often known as Tata Motors, is anticipated to have a busy May. The Q4 results and the demerger into 1:2 will be the next major events for Tata Motors. In addition, Tata Motors has made three significant announcements that will dominate discussions about its stock price the next week. Tata Motors is scheduled to introduce Jaguar Land Rover’s new Defender OCTA, along with its Q3 details.

Following its breach of Rs 1,000, the share price of Tata Motors retreated from this level. The stock finished April 26 little lower, at Rs 999.35 a share. It is valued at Rs 3,32,157.86 crore on the market.

The 52-week high and low of the stock are respectively Rs 1,065.60 and Rs 474.60. The stock is up 26% year to date.

“The conference call to discuss results for Q4FY24 will start from 6:30 PM (India time) on May 10, 2024 with the senior management of Tata Motors and JLR,” said Tata Motors in a recent statement.

Antique Stock Broking said, “We expect PV volumes to post double-digit growth on a YoY basis driven by new launches,” in reference to the Q4FY24 preview. Dealers anticipate sales of EV pickups supported by the new introduction, as the PunchEV has been receiving a respectable amount of feedback.

Motilal Oswal has set a goal for Tata Motors of Rs 970 at the latest, which is lower than the present amount. The attitude is impartial. Additionally, according to Trendlyne data, the 1-year average objective is lower at Rs 976, down 2% from the present price. Additionally, the research showed that 29 analysts’ collective recommendation for Tata Motors is HOLD. The predicted growth in Tata Motors’ EPS is 1673.5%.

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Future JLR Launches from Tata Motors: The company has also revealed that, on July 3, 2024, the highly anticipated Defender OCTA—the all-terrain hero from the iconic British adventure brand Defender—will be unveiled. This comes after a number of private client preview events and the conclusion of an extensive testing and development program.

Prospective customers for the first year’s Defender OCTA allotment are asked to sign up for one of seven unique Defender Elements events in private settings worldwide, ranging from the UK, Germany, and Italy in Europe to the US, Dubai, and Japan, prior to the global reveal.

Tata Motors Patent: With 222 Patents and 117 Design applications submitted in FY24—the most in company history—the company claimed on its website that it has made great progress in the establishment of intellectual property rights (IPRs). These files target major automotive megatrends including connectivity, electrification, sustainability, and safety (CESS) and include a broad range of product and process advancements.

They also cover a variety of vehicle systems, including HVAC, pollution control, body & trim, suspension, brakes, and engine. During the same time, Tata Motors obtained 333 patents, its highest-ever award, bringing its total number of issued patents to over 850.

The Next Big Goal for Tata Motors?
WeInvestsmart.com founder Raj Kumar said in a March LinkedIn post that they anticipate Tata Motors to reach the Rs 2,000 milestone in 2027 and the Rs 2,500 milestone in 2018.

According to WeInvestsmart’s study, Tata Motors has a lot of chances in the luxury automobile, commercial, and rapidly expanding electric vehicle markets. It also said that there are several avenues for the business to expand and make a profit in the future in each of these sectors.

Investors will be closely monitoring developments regarding the company’s demerger in a 1:2 ratio in addition to results and any new product releases in the next month.

Stocks of Tata Motors Divided!
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.

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 more freedom to follow their own development objectives with more agility and responsibility.