Tata Technologies IPO to Q4 Results: Why should you buy Tata Motors shares?

According to stock market watchers, Tata Motors has put Covid behind it and the auto giant is set to make a big jump on the fundamental front and Tata Technologies IPO is going to play a big role in it. He added that Tata Technologies should start accumulating shares of Tata Motors before the launch of the IPO as the public issue is a 100 per cent OFS, which means that the net proceeds of the public issue will go into the balance sheet of the shareholders who sold their stake in Tata Technologies. Will go And Tata Motors is one of the shareholders who will sell their stake in the IT company through this upcoming IPO.

In Q4 results announced yesterday, Tata Motors beats estimates in consolidated net profit Q4 FY23 reported a net loss of Rs 5,407.79 crore 1,032.84 crore in the same quarter of the previous financial year. Sequentially, Q4FY23 PAT saw a growth of around 83 per cent. The company’s top-line front strengthened with over 35 per cent growth in revenue.

Himanshu Singh, Research Analyst, Prabhudas Lilladher, said on Tata Motors’ Q4 results 2023, “Revenue was slightly lower than our estimate while higher than the street estimate. EBITDA margin was largely in line with our and street estimate. Depreciation was higher than expected.” While PAT benefited from deferred tax gains. Overall, good set of numbers as expected.”

jlr sales

“JLR expects the gradual recovery in chip supply to continue in FY24 and aims to grow wholesale sales through FY24 and achieve an EBIT margin of over 6 per cent in FY24. Investment spend in FY24 to approximately GBP3bn is expected to grow, with free cash flow to exceed GBP2bn and net debt to reduce to less than GBP1bn by FY24,” said expert Prabhudas Lilladher.

Himanshu of Prabhudas Lilladher further added that the order book remains strong despite the increase at 200K units Retail Sales, Range Rover, Range Rover Sport and Defender represent 76 percent of the book.

Tata Motors Ltd holds 74.69 per cent stake in Tata Technologies Ltd and has offered to sell 9.571 crore Tata Technologies shares in the upcoming IPO. On 9 March 2023, the IT company filed DRHP with SEBI to launch the IPO.

How Tata Technologies IPO will prove to be a game changer Tata MotorsAvinash Gorakshkar, Head of Research, Profitmart Securities said, “As per the DRHP filed by Tata Technologies Limited with SEBI, Tata Motors Input cost per share in Tata Technologies is 7.40 per share and if we look at the unlisted market signals, we can assume that the absolute value of Tata Motors’ investment in Tata Technologies will increase drastically. Most importantly, this IPO will be a fully OFS, which means that the net proceeds of the Tata Technologies IPO will go to the balance sheet of Tata Motors and other shareholders, instead of Tata Technologies Limited. Hence, the IPO is expected to streamline the cash flow in Indian Auto. This is the reason for the rally in Vishal and Tata Motors shares, which is expected to continue further.”

US dollar weakness

“Even though the US dollar recovered from a one-month low last week, the outlook for the US dollar remains weak in view of the US debt ceiling and hence FII buying is expected to continue.” indian stock market, Since auto and banking are favorite sectors of foreign investors, Tata Motors is expected to continue to attract FIIs in the short to medium term,” said Avinash Gorakhkar.

tata motors share price target now

On outlook for Tata Motors shares after strong fourth quarter results and other developments, Himanshu Singh of Prabhudas Lilladher said the auto stock could go higher. 590 per share level in the short to medium term.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.