On 2nd November 2023, Tata Motors reported a significant Q2 FY24 turnaround with a net profit of ₹3,764 crore, primarily driven by strong performance from its luxury car subsidiary, Jaguar Land Rover (JLR). The company’s shares surged by 4.7%, reaching ₹666 apiece on November 3. Bolstering its domestic market presence, Tata Motors announced the initiation of car production from its newly acquired Sanand 2 facility by Q4 FY24, adding 30,000 units to its annual capacity. Global brokerages, including Jefferies and Morgan Stanley, expressed a bullish outlook on the company’s future prospects.
On the 9th of November, Moody’s Investors Service upgraded the credit ratings of Tata Motors Limited and its subsidiary Jaguar Land Rover (JLR) to Ba3, signaling an improvement in financial strength and a reduced risk of credit default. The past positive outlook indicated the potential for further rating enhancements.
Tata Motors shares surged by 27.28% in the last 6 months, driven by strong Jaguar-Land Rover sales and robust demand for popular models like the Range Rover, Range Rover Sport, and Defender.
Motilal Oswal Securities has a ‘Buy‘ rating on the stock with a target of Rs 740 (as per report published on 07th October 2023).
In the previous quarter, Tata Motors declared a final dividend of Rs 2 per equity share and Rs 2.1 per share for DVR shareholders.
Numerous reputable brokerages have kept their positive predictions for Tata Motors. On the counter, there are ‘Buy’ calls from Prabhudas Lilladher, Jefferies, Nuvama, and Emkay.
Tata Motors, as of 9th November 2023 is trading at Rs.648.80 per share with a market cap of Rs.2,38,376 Crore.
In this article, we are going to see Tata Motors Share Price target for 2023 to 2025, and if it is a good decision to have the stock in your portfolio. We will also be discussing the fundamental business analysis of Tata Motors.
But before we do, let us have a look at who Tata Motors is and a brief background of the same.
About Tata Motors
Tata Motors is an Indian automotive brand that has been working in the country for the last 77 years. It has many subsidiaries and is working in many joint ventures.
Tata took over Daewoo the biggest truck manufacturer in South Korea in 2004, and its most popular takeover is Jaguar and Land Rover which took place in 2008 from Ford.
Tata Motors employs over 81,000 of its employees. And is a market leader in the commercial vehicle segment with over 42% market share.
It is working internationally with different companies in joint ventures like an alliance with Fiat and has R&D facilities in the UK, Italy, India, and South Korea.
Tata Motors in Recent News
- Tata Motors Announces Q2 FY2024 results, posts impressive results. (2nd November 2023)
- Tata Motors plans to start its Sanand 2 manufacturing plant by Q2 Fy2024, says Tata Motors CFO (2nd November 2023).
- Moody upgrades Tata Motors (9th November 2023)
Tata Motors in the Recent Past: Major Announcements and Related News
- Magenta Mobility collaborates with Tata Motors to introduce 500 Ace EVs for delivery purposes. (October 9, 2023)
- Tata Motors Q2 Report: Worldwide wholesale figures surge by 7%, reaching 340,000 units, with Jaguar Land Rover (JLR) volumes showing a significant 29% year-on-year increase. (October 6, 2023)
- Tata Motors unveils “Tata.ev” as the new brand name for their electric vehicles. (1st September, 2023)
- Tata Motors Achieves Record High as Robust JLR Sales Soar; Shares Touch ATH
- Tata Motors Share Price Accelerates to New Heights as June Sales Surpass Expectations
- Tata Motors is to develop a 4MWp solar project in the Pune plant.
- Tata Motors anticipates that electric vehicles (EVs) will comprise 50% of its sales by 2030.
- Tata Motors gets an investment of 1 billion dollars for its EV division
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Tata Motors started really well in 2023 and is up by 2.85% in the last 30 days (as of 9th Nov, 2023).
The share price is up by 64.26% YTD. As per our prediction, Tata Motors’ share price can go up to Rs. 690.39 per share by December 2023 and the minimum price may drop to Rs.611.07.
For the domestic business, Tata Motors aims to achieve zero debt by FY24.
We see an incline in the last two months due to strong Q2 results, posted by Tata Motors recently.
As of November 9, 2023, Tata Motors share price is trading at Rs. 648 with a market cap of Rs. 2.38LCr. The current PE ratio is 13.65.
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2024 can be a great year for Tata Motors and prices can skyrocket that year, we predict that it will be a bull year for Tata Motors, and investing in that period can be very beneficial.
January can see a maximum of Rs.680.0 per share and a minimum of Rs.543 per share which is expected to increase in February, the maximum can be Rs. 766.37 per share and a minimum of Rs.539.52 per share.
In March, we can see a bullish market with a maximum price of Rs.681.49 per share and that will go to a maximum of Rs. 766.37 per share in December.
The maximum and minimum share price target of Tata Motors for 2025 is ₹766.37 and ₹457.14.
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Maximum Tata Motors share price target 2025: ₹929.62
Minimum Tata Motors share price target 2025: ₹539.45
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In 2027, we might see that the market can be a little slower. We cannot say that it is bearish but can see that the prices might not be like the previous year of 2026.
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Tata Motors Financial Condition: Last 5 years
This is the Profit and Loss statement of Tata Motors comparing the growth of the company for the last 5 years.
As we can see the assets and liabilities of the company have not changed much but the cash reserves of the company have grown by a lot of margins.
We know that Tata Motors bought a factory from Ford in Sanand and plans to manufacture EVs in that factory. Recently they announced this manufacturing plant will be active by FY2024, which will increase the production capacity. We expect Tata Motors to become a top EV brand in India for its EV division and its share price may skyrocket.
Also read: SBI Price Target 2023 to 2030
Tata Motors and Jaguar Land Rover Receive Rating Upgrades from Moody’s with a Positive Outlook
Tata Motors Q2Fy2024 Earning Results (Latest)
Tata Motors declared its Q2Fy2024 results on November 2nd, 2023, and here is the summary.
- Tata Motors reported a consolidated net profit of Rs 3,764 crore for Q2FY24, a significant turnaround from the net loss of Rs 945 crore in Q2FY23. The auto company’s profitability boost was attributed to increased domestic market volumes, reduced commodity prices, increased volume at Jaguar Land Rover (JLR), and better operating leverage.
- The consolidated net revenue rose by 32.1% to Rs 105,128 crore, surpassing the previous year’s Q2 revenue of Rs 79,611.4 crore. EBITDA stood at Rs 14,400 crore, marking an 86% increase from Rs 5,571 crore a year earlier. The operating margin improved to 13.7%, a boost from 7.8% the previous year.
- Tata Motors reported a standalone net profit of Rs 1,270 crore for Q2FY24, a contrast to the net loss of Rs 293 crore in Q2FY23. JLR’s revenue increased by 30.4% to £6.9 billion, reflecting enhanced wholesales, better mix, and reduced costs. JLR sales, excluding China joint ventures, surged by 29% to 96,817 units, thanks to improved semiconductor supply.
- The company’s total sales volume for Q2FY24 was slightly higher at 2,43,024 units compared to 2,42,861 units in Q2FY23. Passenger vehicle sales dipped by 2.4%, but commercial vehicle sales rose by 3.5%.
- The company projects a gradual rise in production and wholesale volumes in the latter half of FY24, with an expected EBIT margin improvement of about 8%.
- JLR forecasts a positive free cash flow of over £2 billion in FY24 and plans to reduce net debt to under £1 billion by the end of FY24.
- Despite external challenges, Tata Motors remains optimistic about demand and expects moderate inflation. The company highlighted its healthy order book at JLR, robust demand for heavy trucks, and new products in the passenger vehicle segment as factors for a stronger H2 performance.
Tata Motors Q1Fy2024 Earning Results
- Tata Motors reported a consolidated net profit of Rs 3,203 crore in Q1 FY2024, significantly driven by robust sales of its luxury vehicle unit, Jaguar Land Rover (JLR), and strong performance of its passenger and commercial vehicle businesses in India. The revenue from operations showed a 42% YoY growth, reaching Rs 1.02 lakh crore.
- JLR’s revenue witnessed a 57% YoY surge, amounting to £6.9 billion with a pre-tax profit of £435 million. The increased profitability reflects favorable volume, mix, pricing, and foreign exchange revaluation. JLR’s order book remains strong at 185,000 units.
- Despite a 14.4% YoY decline in domestic wholesale and retail sales and a 32% YoY drop in exports, the commercial vehicle business reported a 4.4% growth in revenue to Rs 17,000 crore due to improved product mix and better market operating price.
- The Passenger Vehicle segment saw an 11% revenue growth, attributed to improved pricing. Electric vehicle volumes recorded a high of over 19,000 units, indicating a steady market trend towards electrification.
- Tata Motors also plans to delist Tata Motors DVR and give its investors 7 shares of Tata Motors against 10 DVR shares.
Jefferies, a global brokerage firm, has given a positive outlook on Tata Motors, particularly highlighting the potential of its luxury car unit, Jaguar Land Rover (JLR). The firm predicts JLR will experience a strong second half, driven by increased volumes and higher capacity for Range Rover models. With a “buy” recommendation on Tata Motors’ shares, Jefferies has set a target price of Rs 800, indicating a potential upside of nearly 28 percent. (November 2, post Q2 results).
Morgan Stanley maintains a bullish stance on Tata Motors, emphasizing the company’s achievements in debt reduction and minimizing losses in the Indian EV segment. The firm has given an “overweight” recommendation for the automobile major. Analysts from Morgan Stanley have set a target price of Rs 711 for Tata Motors‘ shares, marking a 14 percent increase from the closing price of November 2.
CLSA has given a “buy” recommendation for Tata Motors, pointing to anticipated production increases for Jaguar Land Rover (JLR) in the second half, potential market share gains in the domestic passenger vehicle sector for FY25, and the expectation of maintaining a double-digit EBITDA margin in the domestic commercial vehicle space. The firm is optimistic about Tata Motors due to these growth indicators and positive market dynamics. However, the exact target price set by CLSA was not specified in the provided information. Last month, CLSA recommended buying Tata Motors shares with a price target of Rs. 803. (18th October 2023)
Kotak Institutional Equities forecasts a strong FY2024E for Tata Motors due to JLR’s performance and commodity benefits, but cites concerns over developed market slowdowns; hence, they’ve upgraded their stance to “REDUCE” with a target price of Rs 630.
ICICI Direct has issued a buy call on the Tata Motors stock, setting a target of Rs 700.
Motilal Oswal has given a BUY call on Tata Motors. According to the latest recommendation from the firm, you can buy Tata Motors with a price target of Rs.750. They had earlier given a target of Rs.650.
Nomura India increased its TaMo stock price forecast to Rs. 685.
Frequently Asked Questions
Is Tata Motors in debt?
Tata Motors is currently in net debt of Rs. 43,600 crore as of 3rd November 2023 down from a net debt of Rs.48,700 Crores (in early FY 2023). However, Tata Motors has been reducing its debt and aims to achieve zero net debt by FY24.
Tata Motors Share Price Target of 2025 suggests it could be trading between 539.45INR to 929INR.
Will Tata Motors rise?
Tata Motors is expected to rise in the future as well. As we said, we are bulling on this stock because of the expansion of TM into the EV sectors. This auto stock, according to us, is a long-term hold.
Tata Motors may drop by 1 to 1.5% tomorrow.
Tata Motors is expected to trade in between ₹2,277.58 and ₹1,594.30 per share in 2030.
Tata Motors is expected to trade in between ₹3,877.58 and ₹2,594.30 per share in 2040.
Tata Motors is expected to trade in between ₹5,477.58 and ₹4,294.30 per share in 2050.
After the recent Q2 FY2024 results, Tata Motors is now trading with a PE ratio of 13.75, while the closest competitors are trading with a PE ratio of 41.53. If we go by the PE ratio, Tata Motors’ valuation is looking cheap.
For the past few months, Tata Motors has seen a good growth in the share price. We predict that there is a lot of potential in the company. We expect the next 2 months to keep growing in its share price as per our Tata Share price predictions.
Long term, we are very bullish on Tata Motors and the reason for it is because of the EV sector. There is a great future for EVs in India, looking at the population, and Tata is already preparing for that.
Most of the brokerage firms have given a BUY call on Tata Motors with most of them giving a target above Rs.700.
We are bullish on Tata Motors long term, but before investing in the company, beware of the risks of the market and do not invest all your money at one time. Invest your money in parts and invest wisely.
Disclaimer: The prices mentioned in this article ‘Tata Motors Share Price Target 2023 to 2030′ are created using our prediction tool, and it in no way guarantees that the actual price will be exactly as predicted. Please do your own research before investing in Tata Motors. We hold Tata Motors in our portfolio and will be holding it for the long term.
Last Updated: 9th November, 2023.
What did we learn?
- 1 About Tata Motors
- 2 Tata Motors in Recent News
- 3 Tata Motors in the Recent Past: Major Announcements and Related News
- 4 How to buy Tata Motors shares?
- 5 Tata Motors Share Price Prediction for 2023
- 6 Tata Motors Share Price Prediction for 2024
- 7 Tata Motors Share Price Target for 2025
- 8 Tata Motors Share Price Target for 2026
- 9 Tata Motors Share Price Target for 2027
- 10 Tata Motors Share Price Target for 2028 to 2030
- 11 Tata Motors Financial Condition: Last 5 years
- 12 Tata Motors and Jaguar Land Rover Receive Rating Upgrades from Moody’s with a Positive Outlook
- 13 Tata Motors Q2Fy2024 Earning Results (Latest)
- 14 Tata Motors Q1Fy2024 Earning Results
- 15 Tata Motors Share Price Target by Experts
- 15.1 Tata Motors share price target by Jeffries
- 15.2 Tata Motors share price target by Morgan Stanley
- 15.3 Tata Motors share price target by CLSA
- 15.4 Tata Motors Share Price Target by Kotak Institutional Equities
- 15.5 Tata Motors share price target by ICICI Direct
- 15.6 Motilal Oswal on Tata Motors Share Price Target
- 15.7 Tata Motors Share Price Target by Nomura India
- 16 Frequently Asked Questions
- 16.1 Is Tata Motors in debt?
- 16.2 What will be the price of Tata Motors Share in 2025?
- 16.3 Will Tata Motors rise?
- 16.4 What is the Tata Motors Share price target for tomorrow?
- 16.5 What is the share price target of Tata Motors Share for 2030?
- 16.6 What is the share price target of Tata Motors Share for 2040?
- 16.7 What is the share price target of Tata Motors Share for 2050?
- 17 Should You Invest in Tata Motors Share?