Tata Motors share price: Morgan Stanley's 'overweight' call on demerger decision - Hindustan Times
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Tata Motors share price: Morgan Stanley's 'overweight' call on demerger decision

Mar 05, 2024 08:42 AM IST

Tata Motors Share price today: Morgan Stanley assigned a target price of ₹1,013, an upside of 25 per cent from the last close of ₹988.

Tata Motors Share price today: Morgan Stanley assigned 'overweight' call on Tata Motors after the Indian automaker said that it will split into two listed companies- commercial vehicle (CV) and passenger vehicle (PV) businesses as separate entities. The global brokerage firm said that the demerger decision reflects Tata Motor's confidence in the PV segment and shows that is is self-sustaining and could lead to better value creation for the company.

Tata Motors Share price today: A Tata Motors logo installed at one of its showroom is pictured in Mumbai.(AFP)
Tata Motors Share price today: A Tata Motors logo installed at one of its showroom is pictured in Mumbai.(AFP)

Stocks in focus today: Tata Motors

Morgan Stanley assigned a target price of 1,013, an upside of 25 per cent from the last close of 988. While on the electric vehicle (EV) front, analysts said that Jaguar and Land Rover and the domestic PV business will also have "synergies in the EV era".

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Read more: Tata Motors demerger: Commercial, passenger vehicles businesses to be split into two separate listed companies

Tata Motors demerger details

Tata Motors said that after the demerger, one company will house passenger and electric vehicles as well as Jaguar Land Rover businesses while the commercial vehicle business and related investments will be a different entity. Tata Motors is India's market leader in the commercial vehicles space and its shares have risen about 27% in 2024. The share prices more than doubled last year.

Read more: Tata Motors demerger: How does it affect shareholders?

The arrangement for the demerger shall be placed before the board in the coming months. It will then be subject to all necessary shareholder, creditor and regulatory approvals. This could take a further 12-15 months to complete, the company said..

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Tata Motors demerger: Impact on shareholders

Following the split, shareholders will continue to have an identical shareholding in both the listed entities, the company said.

Chairman N Chandrasekaran said that the demerger will help better growth prospects for employees and enhanced value for shareholders.

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