NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Tata Motors Ltd. delivered a stronger-than-expected performance in the June quarter, aided by robust margins and higher other income, prompting Motilal Oswal Financial Services to raise its earnings estimates for FY27 and FY28.
However, the brokerage retained its 'Neutral' rating, citing limited upside potential and uncertainties surrounding the proposed Iveco acquisition.
ALSO READ: HAL Shares In Focus: Motilal Oswal Raises Target Price After Healthy Q1 — Check Upside
Valuation and view
Given the better-than-expected performance in Q1, the brokerage has raised its earnings estimates by 6%/2% for FY27/FY28.
Motilal Oswal now factors in Tata Motors CV to post a CAGR of 12%/10%/12% in revenue/Ebitda/PAT over FY26-28E.
The stock at 23.5x FY27E and at 20x FY28E EPS appears fairly valued.
Motilla Oswal reiterates Neutral rating with a target price of Rs 434 per share, valuing the core business at 12x FY28E EV/Ebitda (in line with peers) and adding Rs 15 per share for its stake in Tata Capital.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
