Tata Motors Share Price today: Gains 4% to reach 52-week high. Here’s why
Tata Motors Share Price: Tata Motors shares gained 4 per cent hitting 52-week high of ₹1,027 today (March 5). This comes after the company announced that it will split its passenger and commercial vehicle businesses. Global brokerage firm JP Morgan assigned an “overweight” rating to the stock and a price target of ₹1,000 as it praised the company’s decision to demerge the business saying that it reflects confidence in the personal vehicle (PV) segment being self-sustaining. This could lead to better value-creation for Tata Motors, it said, assigning a target price of ₹1,013.
Morgan Stanley also said that the move will ensure synergy between the company’s British arm Jaguar and Land Rover and domestic PV business.
Nomura put a “buy” call and a target price of ₹1,057 on the share- a 7 per cent upside from the current market price.
“In particular, we believe the PV business has more potential to create value over the next few years and it has seen a remarkable turnaround after 2020,” the brokerage said, adding, “The demerger looks like a good thing for the stock and we could see a positive reaction in the coming weeks which can attract investments as well. Investors who are willing to give higher valuations to the EV space would be more enticed than they initially would have been.”
However, Investec put a “hold” call on the counter and doesn’t expect a significant impact on valuations as it said that the demerger “creates a pure CV play and a global PV play”.
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