Company Update - Virtual JLR Investor Event - Tata Motors - ICICI Direct

We attended the virtual Jaguar Land Rover (JLR) investor event, wherein the company expanded upon the implications of its recently unveiled 'Reimagine' strategy for product portfolio, vehicle architecture, powertrain technology and finances. We came away enthused by its aggressive push towards electrification with JLR being transformed into all EV brand by 2026 along with first BEV Land Rover to be launched in 2024. JLR also intends to be FCF positive starting FY23 with FY25 seen as net cash (B/S) positive.

Valuation & Outlook

Reimagine marks a bold and necessary step change in evolution for JLR in what is set to be a transformational decade for its business worldwide given the ongoing rise of EVs. We are enthused by its commitment towards phasing out of solely fossil fuel powered vehicles by FY26E while maintaining financial discipline on the deleveraging and capex fronts. Revising our forward estimates, we arrive at an SOTP-based target price of Rs. 375 for Tata Motors (3.5x, 12x FY23E EV/EBITDA for JLR, India respectively, earlier TP Rs. 350) and maintain our BUY rating on the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TataMotors_CoUpdate_Mar21.pdf

Shares of TATA MOTORS LTD. was last trading in BSE at Rs.328.1 as compared to the previous close of Rs. 323. The total number of shares traded during the day was 5221906 in over 49080 trades.

The stock hit an intraday high of Rs. 331.85 and intraday low of 322.55. The net turnover during the day was Rs. 1708305865.

Source : Equity Bulls

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