Tag: Tata Motors

Tata Motors shares drop 8% after multiple downgrades post cautious commentary

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Tata Motors fell as much as 8% on Monday, marking their biggest single-day drop since February 2022.

Many analysts tracking Tata Motors Ltd. have downgraded the commercial and passenger vehicle manufacturer after the management’s cautious commentary for financial year 2025 and mixed results for the March quarter.

Brokerage firm UBS called Tata Motors’ March quarter results “underwhelming” and as a result, maintained its “Sell” rating on the stock. It cited three reasons for sticking to its recommendation.

First, it sees margin risks for Jaguar Land Rover on weakening product mix.

Second, the rising risks from hybrid vehicles has resulted in no substantial market share gain for the Passenger Vehicle and Electrical Vehicle businesses.

And lastly, UBS expects Tata Motors’ India Commercial Vehicles business to remain subdued in the near term.

During its earnings call, the management of Tata Motors said that the margins for JLR in financial year 2025 will remain flat due to higher marketing spends and added that the June quarter appears weak after a seasonally strong March quarter.

Nomura has downgraded Tata Motors from “buy” to “neutral” with a price target of ₹1,141. It said that JLR could face demand risks going forward and that there are rising risks to global auto demand.

The brokerage also said that the stock is trading in a “fair value zone” at 5.4 times financial year 2026 Enterprise Value-to-EBITDA.

Morgan Stanley has downgraded Tata Motors to “equalweight” from its earlier rating of “underweight” but raised its price target to ₹1,100 from ₹1,030 earlier. The brokerage said that the good news is already priced into the stock.

On the other hand, Goldman Sachs has also downgraded the stock to “neutral” from the earlier rating of “buy” and cut its price target to ₹1,040 from ₹1,100 earlier.

On the flip side, JPMorgan has maintained its “overweight” rating on Tata Motors and raised its price target to ₹1,115 from ₹1,050 earlier. It said that the street will hope for a repeat of financial year 2024, where Tata Motors started with a JLR margin guidance of 6% and upped it to 8% and achieved 8.5% by the end of the year.

Jefferies has also raised its price target on Tata Motors to ₹1,250, while maintaining its “buy” recommendation saying that despite some industry demand concerns in India, it continues to like Tata Motors given the strong business cycle at JLR, a crucial PV launch in India and strong deleveraging.

Shares of Tata Motors are trading 8% lower at ₹964.65. The stock is the top loser on the Nifty 50 index. Shares had risen 33% so far this year, after having doubled in 2023. Tata Motors was the top Nifty gainer last year and the only stock that doubled in value.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Auto launches this week: BMW Limousine to Maruti Swift to Tata Ace EV

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As the global economy shifts gears towards sustainability and innovation, the automobile industry is seeing several key developments and announcements. It’s another week when we focus on electric vehicles, autonomous driving, and other cutting-edge technologies to shape the future of mobility.

Here are the auto launches for this week:

BMW 3 Series Gran Limousine M Sport Pro Edition

BMW India launched the new 3 Series Gran Limousine M Sport Pro Edition on Thursday, May 9, 2024. The car is available at all dealerships and the BMW Online shop and is manufactured locally at the BMW Group Plant in Chennai. It comes in the 330Li petrol variant and is offered in four metallic paintworks – Mineral White, Skyscraper Grey, Carbon Black, and Portimao Blue. The limousine is powered by a two-litre four-cylinder petrol engine and comes with an ex-showroom price of ₹62.6 lakh.

Ace EV 1000

Tata Motors launched a new electric mini-truck, the Ace EV 1000, on May 9, 2024, which offers a payload of 1 tonne and a certified range of 161km on a single charge. The vehicle is powered by the EVOGEN powertrain and comes with a 5-year maintenance package and a 7-year battery warranty. The vehicle is powered by a 27kW (36hp) motor with 130Nm of peak torque and equipped with an advanced battery management system and Fleet Edge telematics system.

Maruti Suzuki Swift

Carmaker Maruti Suzuki has unveiled the fourth generation of Swift, one of the company’s most successful models on Indian streets since 2005. The starting price of the all-new Swift is ₹6.49 lakh (ex-showroom), and it is available to pre-book the latest hatchback with an initial payment of ₹11,000. The engine inside is the 1.2-litre, three-cylinder Z-Series variant and comes with six airbags. It will be available in nine colours, including six mono-tone and three dual-tone options, and the dual-tone options are available at an additional cost of ₹15,000.

Xoom 125 cc and Xoom 160 cc scooters

On May 8, Hero MotoCorp announced its plans to launch the Xoom 125 cc and Xoom 160 cc scooters ahead of this year’s festive season, which starts in October, with Vijayadashami on October 12, 2024, and Diwali on November 1, 2024.

EV brand Onvo

China electric vehicle maker Nio partners with larger rival BYD to launch the lower-priced EV brand Onvo to compete with Tesla. The new brand is known as “Onvo” in English and “Ledao” in Chinese, and it is a website for the car. Nio has said it expects the new Onvo L60 to compete with the Tesla Model Y.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors mulls merger of EV subsidiary with passenger vehicles business after demerger

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors Ltd, which is separating its commercial vehicle (CV) and passenger vehicle (PV) businesses, is also considering an eventual merger of its electric vehicles business—a step-down subsidiary—with the PV unit after the demerger exercise concludes, people aware of the development said.

On March 4, Tata Motors announced a value-unlocking exercise to demerge its businesses into two separate listed entities. One would be the CV business and its related investments, and the other would be the PV businesses, including the EV unit, JLR (Jaguar Land Rover), and related investments.

The proposed merger of the EV business—Tata Passenger Electric Mobility Ltd—with the PV business (Tata Motors Passenger Vehicles Ltd, set up as a separate subsidiary of Tata Motors in 2021 to focus on the internal combustion engine business) is being looked at as creating liquidity for existing investors in the EV business such as TPG, as well as future investors, the people said.

The passenger vehicle business, to be created post-demerger, will include the two subsidiaries—Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility —and the JLR business.

“Given the fact that Tata Motors intends to turn its PV division fully electric not so far in the future, there will be no need to maintain separate EV entity,” said a person cited above. As of May 9, Tata Motors had a market capitalisation of ₹3.4 lakh crore.

In October 2021, Tata Motors announced that TPG Rise and its co-investor ADQ would invest ₹7,500 crore (approx $1 billion) in the EV subsidiary for an 11-15% stake at a valuation of $9.1 billion. Tata Motors received the second and final tranche of ₹3,750 crore from the two investors in January 2023.

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An email sent to spokespeople for Tata Motors and TPG did not elicit a response until press time on Thursday.

“The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their respective strategies to deliver higher growths with greater agility while reinforcing accountability,” the carmaker had said while announcing the demerger plan on March 4.

Over recent years, Tata Motors’ CV, Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses have implemented distinct growth strategies, and since 2021, these businesses have been functioning independently under their respective CEOs, Tata Motors said.

While there are limited synergies between commercial vehicles and passenger vehicles businesses, there are considerable synergies to be harnessed across PVs using petrol and diesel, EVs, and JLR, particularly in the areas of autonomous vehicles, and vehicle software which the demerger will help secure, the company said.

The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of Tata Motors shall continue to have identical shareholding in both the listed entities. Regulatory approvals could take a further 12-15 months to complete the demerger.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors Q4 net profit surges to ₹17,407 crore; to pay ₹6 dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors reported a sharp jump in its fourth-quarter net profit at ₹17,407 crore on Friday, May 10, which was also aided by a tax credit of ₹8,159 crore. The Tata Group auto major posted a net profit of ₹5,400 crore in Q4FY23.

Tata Motor’s revenue for the January-March quarter of the financial year 2023–24 rose to ₹1.20 lakh crore, rising more than 14% from ₹1.05 lakh crore in Q3FY23.

Tata Motor’s EBITDA or earnings before interest, taxes, depreciation, and amortisation jumped to ₹17,035 crore, rising 33% on a year-on-year (YoY) basis, from ₹12,810 crore in Q3FY23. The EBITDA came in below a CNBC-TV18 poll, which estimated it at ₹17,712 crore.

The Nexon-maker’s margin for the quarter rose 210 basis points (bps) YoY to 14.2%. The margin also missed the CNBC-TV18 poll estimate of 14.7%.

What Tata Motors management said on financial results

Tata Motors management said it has delivered its highest-ever revenues, profits, and free cash flows and its India business is now debt-free.

“It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest-ever revenues, profits, and free cash flows. The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years,” PB Balaji, Group Chief Financial Officer, Tata Motors, said in the exchange filing.

Looking ahead, Tata Motors management sounded cautious, saying that the first half of the year could be relatively weaker but that it expects resilient demand in its premium luxury segment.

“We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25,” the filing added.

Tata Motors dividend amount and record date

Tata Motors also announced a dividend of ₹6 per share for its shareholders for FY24, which translates to 300% per equity share against a face value of ₹2.

“We would like to inform that the Board of Directors at its Meeting held today has recommended declaration of final dividend of ₹6.00 per Ordinary Share of ₹2 each (@ 300%) (₹3.00 normal dividend and ₹3.00 special dividend) and ₹ 6.20 per ‘A’ Ordinary Share of ₹2 each (@ 310%) (₹3.10 normal dividend and ₹3.10 special dividend) for the financial year ended March 31, 2024. The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before June 28, 2024,” the company informed in its exchange filing.

JLR Q4 results

Tata Motors’ premium luxury segment vertical Jaguar Land Rover’s (JLR) revenue surged 10.7% to £7,860 million in Q4FY24. JLR’s revenue in Q4FY23 stood at £7,102 million. Revenues for FY24 were £29.0 billion – JLR’s highest-ever full-year revenue and up 27% compared to the prior year, the filing said.

Commenting on JLR Q4 results, Adrian Mardell, CEO, said, “We have delivered a record financial performance for the company, generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion. The foundation of this performance was the sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, underpinned by a consistent focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024.”

Tata Motors share price performance

Tata Motors share price settled at ₹1,047 on the NSE, up 1.6%. So far this year, Tata Motors stock price has surged more than 33%. The stock is the second best performer on the Nifty 50.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors launches Ace EV 1000 with 1 tonne payload capacity and 161 km range

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown commercial vehicle manufacturer Tata Motors, on Thursday, launched a new electric mini-truck Ace EV 1000. As per Tata Motors, the vehicle offers a payload of 1 tonne and a certified range of 161km on a single charge.

Vinay Pathak, Vice President & Business Head – SCV&PU, Tata Motors Commercial Vehicles, in a company statement, said, “With the launch of the Ace EV 1000, we are extending the experience to customers who are looking at solutions with improved operating economics across the varied sectors they service.”

The Ace EV is powered by the EVOGEN powertrain and comes with a 7-year battery warranty and a 5-year maintenance package.

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It features an advanced battery cooling system and regenerative braking system. The new EV also allows regular and fast charging capabilities. The vehicle is powered by a 27kW (36hp) motor with 130Nm of peak torque.

The Ace EV 1000 comes equipped with an advanced battery management system and Fleet Edge telematics system.

Tata Motors, part of the $150 billion Tata group, markets its vehicles in Africa, the Middle East, Latin America, Southeast Asia, and the SAARC countries.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors shares outperform in a weak market ahead of Q4 results: Here’s what to expect

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Tata Motors Ltd. are trading with gains of close to 2% on Thursday, outperforming in an otherwise weak market where the Nifty 50 has shed over 300 points. The stock is the second best performer on the Nifty 50.

Tata Motors has been an outperformer over the last 12 months with shares jumping as much as 106%. The stock is gaining ahead of its March quarter results, which it is scheduled to report on Friday.

Here’s what to anticipate from Tata Motors’ March quarter results:

• Revenue likely to grow by 12% to ₹1.2 lakh crore
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) may rise 38.2% year-on-year to ₹17,712 crore.
• EBITDA margin may rise by 260 basis points to 14.7% from 12.1% last year.
• For Jaguar Land Rover (JLR), Kotak Institutional Equities is projecting a 10.6% growth in net sales, 25.7% growth in its EBITDA and a 200 basis points expansion in margins.
• JLR volumes have risen 16% from last year during the March quarter.
• CV Volumes for the India business fell 6% from last year but PV volumes grew by 15% year-on-year.

Promoters of Tata Motors own a 46.36% stake in the company. Domestic Mutual Funds own a 9.5% stake, while foreign institutions have a 19.2% stake in the manufacturer of passenger and commercial vehicles.

Shares of Tata Motors are trading 1.8% higher at ₹1,030.75. The stock is trading close to its record high of ₹1,065.6.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors shares near record high, surge 7% in the last one week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors Ltd. shares gained as much as 2% on Thursday and have now gained for the third day in a row. The stock has risen in seven out of the last eight trading sessions. During this period, the stock has risen from levels of ₹963 to today’s intraday high of ₹1,030.

The passenger and commercial vehicle manufacturer, which also gets a bulk of its sales from its UK-unit Jaguar Land Rover, hit a record high of ₹1,065 on March 31.

For the month of April, Tata Motors’ sales were a mixed bag with Passenger Vehicle sales being under pressure. PV sales rose only 2% from last year in April to 47,983 units. Electric Vehicle sales were also under pressure, declining 2% from last year to 6,364 units. Commercial Vehicle sales outperformed.

In a note on April 9, brokerage firm Morgan Stanley remained “Overweight” on Tata Motors with a price target of ₹1,013. The stock is currently trading above that price.

Nomura also maintained its “buy” recommendation on Tata Motors with a price target of ₹1,057.

Out of the 33 analysts that have coverage on Tata Motors, 24 of them have a “buy” rating on the stock, four have a “hold” rating, while five of them have a “sell” recommendation.

Shares of Tata Motors are trading 1.7% higher at ₹1,025. The stock has risen 30% so far in 2024. The stock was the only one that doubled on the Nifty 50 index in 2023.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors and South Indian Bank join forces to offer commercial vehicle financing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown commercial vehicle manufacturer Tata Motors, on Monday, announced that it has partnered with South Indian Bank to provide financing solutions for its commercial vehicle customers and dealerships.

The Kerala-based private-sector bank will offer financing across Tata Motors’ entire commercial vehicle portfolio. According to a company statement, this partnership aims to support dealerships, foster growth, streamline credit processing and lower interest rates.

PR Seshadri, MD & CEO of South Indian Bank, said, “Our collaboration with Tata Motors enables us to deliver seamless vehicle financing solutions to commercial vehicle dealers and customers. We are confident that our partnership with Tata Motors will result in best-in-class financing solutions, setting a new industry benchmark for excellence.”

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South Indian Bank, which provides financial solutions to dealers nationwide, will offer flexible, competitive financing for dealership needs, supporting dealers’ growth with attractive interest rates, flexible terms and efficient processing.

Rajesh Kaul, Vice President & Business Head – Trucks, Tata Motors Commercial Vehicles, commented, “Our alliance aims to empower fleet owners and dealerships to achieve their business goals. We look forward to providing greater convenience and support to our valued customers and partners.”

Tata Motors offers a wide range of cargo vehicles and mass mobility solutions, from sub-1-tonne to 55-tonne cargo vehicles and 10-seater to 51-seater vehicles. The company has an extensive network of over 2,500 touchpoints.

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South Indian Bank has 955 branches, 3 Ultra Small Branches, 3 Satellite Branches, 1188 ATMs and 133 CRMs across India and a representative office in Dubai, UAE.

As of March 31, 2023, Tata Motors’, part of the $150 billion Tata group, operations include 88 consolidated subsidiaries, two joint operations, three joint ventures and numerous equity-accounted associates.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shareholders to vote on Tata Motors and Tata Motors DVR merger proposal today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The vote on the merger proposal of Tata Motors and Tata Motors DVR will be held today as announced by the board of directors in July 2023.

The company said that it will issue seven (Ordinary) shares of Tata Motors per 10 Tata Motors DVR (A Ordinary) shares, which will stand cancelled.

As on Thursday (April 25), Tata Motors DVR shares traded at a nearly 43% discount to Tata Motors shares.

The merger ratio translates to a 30% discount to Tata Motors shares and significantly below its historical averages.

It will lead to a reduction in the outstanding equity shares by 4.2%, gradually increasing the price for shareholders.

Tata Motors first issued DVRs in 2008 and more of them in 2010 via qualified institutional placement (QIP) and some more through a rights issue in 2015.

However, regulatory changes have since restricted the issuance of such instruments with DVR and Tata Motors remains the only large listed corporation with such an instrument.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors partners with HARMAN Ignite Store to power its integrated in-vehicle app store for its EVs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors has partnered with the HARMAN Ignite Store as its in-vehicle app store, which will get easily accessible. reliable and mobility expereinces to more customers across a new geographical region, the latter said in a statement.

HARMAN is a wholly-owned subsidiary of Samsung Electornics.

With this new partnership, the HARMAN Ignite Store will power the automaker’s Arcade.ev, its recently launched built-in app suite availabile in the Nexon EV and Punch EV. The list of appes will be continuously extended. THe initial content partners include Gaana, Jio Saavn, Jio Pages, TuneIn Radio, DASH Radio, Beach Buggy, Trebble FM, video apps, and more, the company said.

Jens Beckmann, Senior Director of HARMAN Ignite Store at HARMAN International, said the company was delighted to collaborate with Tata Motors and bring India its first integrated in=vehicle app store.

Meanwhile, Anand Kulkani, Chief Product Officer for EV at Tata Motors, said the company’s relationship with HARMAN allows it to keep consumers connected to the contant that is most important to them, while also deliverng experineces that enhance their device. “Our cusotmers want to bring their digital lives with them on the road, with HARMAN Ignite Store our new Nexon EV and Punch EV deliver that for them seamlessly,” he said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow