Tata Motors share price target 2022, 2023, 2024, 2025, 2026, and 2030: In this article, you will learn about Tata Motors share price target 2022, 2023, 2024, 2025, 2026, and 2030, along with the fundamentals, business model, and opportunities that Tata Motors have in EV Theme.
For every investor, it is very important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Tata Motors share price target 2022, 2023, 2024, 2025, 2026, and 2030, along with the fundamentals of the company.
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Tata Motors: Company Profile
Tata motors is a $44billion organization. It is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sport utility vehicles, trucks, buses, and defense vehicles. Tata Motors is one of India’s largest OEMs offering an extensive range of integrated, smart. and e-mobility solutions.
Part of the multi-national conglomerate, the Tata group has operations in India, UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through a strong global network of subsidiaries, associate companies, and joint ventures, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.
Tata Motors has operations in more than 125 countries, a $14.60 billion market cap, sold 8,37,783 vehicles in FY 21 ( excluding JLR sales ), and Rupees 2,49,705 crores in revenue.
- Established in 1945.
- 75,278 employee strength as of FY 2020-21.
- more than 8,400 sales & service points.
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Tata Motors Revenue by Geography
Tata Motors Revenue Mix
The majority of the revenues of Tata motors are from Jaguar and Land Rover, followed by Tata motors commercial vehicles, Passenger vehicles, and Tata motors finance ( which is a subsidiary of Tata Motors ).
- 78% of the revenues are from Jaguar and Land Rover.
- 13.3% of the revenues are from Tata Motors commercial vehicles.
- 6.8% of the revenues are from Tata Motors passenger vehicles.
- 1.8% of the revenues are from Tata Motors finance.
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Tata Motors Share Price Target 2022
Tata Motors Q3FY22 results beat expectations, driven largely by JLR’s strong operational performance. JLR reported Q3FY22 revenue at GBP 4,716 million, 11% higher than our estimates with EBIT margins at 1.4% versus our estimates of negative 1.2%, largely on the back of a favorable product mix (higher share of Range Rover) and lower costs (led by the company’s refocus strategy).
The standalone business reported a net loss of Rs 602 crore, while the consolidated loss was at Rs 1,451 crore. The management indicated that the availability of semiconductor chips is easing, which will lead to higher production in Q4. Retail sales and orders remained robust, which is likely to keep wholesales strong going forward. We have fine-tuned our estimates and expect overall volumes to recover, including that of JLR’s going forward. Domestic CV and PV segments are expected to remain healthy led by new launches.
Driven by an all-around strong performance, we expect TAMO to become earnings positive in FY2023E with a PAT of Rs 11,708 crore, driven by a 16.7% revenue CAGR during FY2021E-FY2023E and a 120 bps improvement in EBITDA margin to 13.4% in FY23E from 12.2% in FY21. The management stays positive on product delivery, launches, and Capex programs as planned earlier. We reiterate our Buy rating on the stock with a share price target of Rs. 540.
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Valuation & View
Tata Motors is witnessing an improvement in all business verticals – JLR, CVs, and PVs. H2FY21 saw strong volume growth and better operational efficiencies aided by aggressive launches, market positioning, product differentiation, cost savings, and investments in R&D. We expect operational performance to improve strongly in Q4FY22, as the supply constraints are expected to ease gradually, while demand continues to remain strong for both JLR and domestic operations. Domestic CV and PV segments are expected to remain healthy on the back of new launches.
Driven by an all-around strong performance, we expect TAMO to become earnings’ positive in FY2023E with a PAT of Rs. 11,708 crore, driven by a 16.7% revenue CAGR during FY2021E-FY2023E and a 120 bps improvement in EBITDA margin to 13.4% in FY23E from 12.2% in FY21. The management stays positive on product delivery, launches, and Capex programs as planned earlier. The stock is trading at valuations at P/E multiple of 17.7x and EV/EBITDA multiples of 5.3x its FY2023E estimates. Tata Motors share price target for 2022 is Rs 540.
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Tata Motors Share Price Target 2023
Tata Motors has given a 68% return in the last 6 months, 56% returns in the last 1 year, and the share price has grown at a CAGR of 40% over the last three years.
Demand remains strong in JLR, with a record order book of 127k units. The semiconductor shortage situation remains dynamic. However, JLR expects a gradual recovery starting 2HFY22, with higher production (by ~50k units) in 3Q from 2QFY22 levels.
In the current quarter, Tata Motors declared losses, and in most cases Tata Motors declares losses, but the biggest brokerages in India Motilal Oswal and ShareKhan expect Tata Motors to declare positive results. Considering all these factors Tata Motors share price target for 2023 is Rs 630.
|Tata Motors share price target 2023|
Tata Motors Share Price Target 2024
Tata Motors is continuously launching new models in the EV segment and if any consumer wants to buy an EV vehicle, the only good option available in the market is Tata Motors, no other automobile company is focusing on the EV segment as Tata Motors did, Maruti Suzuki is not yet entered into EV segment, Maruti Suzuki is the biggest automobile company in India with a market share of more than 50%. Tata Motors can take this as an opportunity and continue to dominate in the EV segment.
JLR volumes have been under pressure since FY19 due to several headwinds. However, there were early signs of recovery in 2HCY19, driven by the new Evoque, the ramp-up in I-Pace, and course correction in China (reversed by the COVID-19 outbreak), which first got derailed due to Covid impact and now due to semi-conductor shortages.
While semiconductor shortages are impacting wholesale volumes, retail volumes are witnessing good recovery in all the key markets (reflecting in the order book of over 110k units). JLR should also benefit from Defender ramp-up. We expect JLR’s volumes (including JV) to grow at 12% CAGR over FY21–23E (after 13.3% CAGR decline over FY18– 21). This, coupled with the possibility of mix improvement and reduced variable marketing spend, would be led to a 16% revenue CAGR.
In the next few years, EV passenger vehicles will be sold more as many state governments and also central governments are pushing towards to EV theme and providing subsidiaries to EV vehicles. This will further increase the EV sales of Tata motors. Tata Motors share price target for 2024 is Rs 760.
|Tata Motors share price target 2024|
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Tata Motors Share Price Target 2025
Tata Motors has been at the forefront of providing electric mobility solutions in the market. The Nexon EV is driving the growth of the EV industry in India with a 65% share of total sales in FY 21.
Tata Motors with a wide range of mass mobility solutions is the largest passenger commercial vehicle manufacturer in the country.
Under the FAME I and II schemes of the government, Tata Motors has already supplied more than 350 electric buses. Already most of the state governments are moving towards EV vehicles. By considering all these factors Tata Motors share price target for 2025 is Rs 910.
|Tata Motors share price target for 2025|
Tata Motors Share Price Target 2026
Tata motors also deriving synergies from the ecosystem of Tata group companies comprising Tata power, Tata chemical, and Tata Autocomp Systems, among others, to develop EV infrastructure in India.
UK government recently revised the phase-out date for the sale of new petrol and diesel cars and vans to 2030 from 2035, while the governments of other countries including Norway and the Netherlands announced goals of banning new petrol and diesel cars. The government of India has also shown strong intent of driving EV adoption in the last few years and has introduced several policies.
Recently Delhi government become the first state government in the country to notify an Aggregators policy to mandate electric vehicles for ride aggregators and delivery services. Delivery services need to adopt EVs in their newly on-boarded fleets, at least 10% of their new 2-wheelers and 5% of 4-wheelers in the next 3 months must be electric. This would be scaled up to 50% of all new 2-wheelers and 25% of new 4-wheelers by march 2023, the Dehli govt said. So, we can clearly say that EV vehicles have a bright future and Tata Motors will have a huge opportunity to grow, Tata Motors share price target for 2026 is Rs. 1,210.
|Tata Motors share price target for 2026|
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Tata Motors Share Price Target 2030
Tata motors are the biggest beneficiary of the EV push in India. Already Tata motors are leading in the EV segment with a market share of 70%, which is awesome.
The main and the biggest advantage of Tata motors is, Tata group has a lot of other companies whose business is in the EV segment.
Tata motors have an ecosystem of companies that work in the EV segment. for example, Tata power works in proving charging infrastructure, Tata chemicals is manufacturing Lithium-ion batteries, Tata Elxsi business is developing technologies related to EV solutions and services, and also Artificial intelligence.
Tata motors have a huge advantage over its competitors. As Tata already has an ecosystem of companies in the EV segment, Tata motors will get all these infrastructures at a lower cost than any other company, which gives Tata motors an advantage of low production and manufacturing costs. As a result, Tata Motors can price their vehicles at a lower competitive price. Tata Motors share price target for 2030 is Rs 2,600.
|Tata Motors share price target 2030|
Tata Motors Share Price Target 2022, 2203, 2204, 2025, 2026, and 2030
|Year||Share Price Target|
|Tata Motors Share Price Target 2022||Rs 540|
|Tata Motors Share Price Target 2023||Rs 630|
|Tata Motors Share Price Target 2024||Rs 760|
|Tata Motors Share Price Target 2025||Rs 910|
|Tata Motors Share Price Target 2026||Rs 1,210|
|Tata Motors Share Price Target 2030||Rs 2,600|
Frequently Asked Questions
What will be target of Tata Motors?
ShareKhan and Motilal Oswal gave a buy call on Tata Motors with a share target of Rs 610 and 565. The time period given by both brokerages when Tata Motors can reach the given share price target is 1 year.
Does Tata Motors have future?
Tata Motors is one of the leading automobile companies in India, Tata Motors is leading in the EV segment with a market share of 70%, which is awesome. The future is all about EV, so definitely Tata Motors is the biggest beneficiary of EV push and Tata motors has an ecosystem of companies that work in the EV segment. for example, Tata power works in proving charging infrastructure, Tata chemicals is manufacturing Lithium-ion batteries, Tata Elxsi business is developing technologies related to EV solutions and services, and also Artificial intelligence.
Can Tata Motors be a multi-bagger?
Yes for sure, Tata Motors has the potential to be a multi-bagger. Tata Motors has a huge opportunity in the EV segment, Tata Motors is already holding more than 70% market share in the EV segment. No other automobile company is near Tata Motors in terms of EV push and the no of EV vehicles launched, Tata Motors has a huge opportunity to capture the EV market.
What is the target price of Tata Motors?
The target price of Tata Motors for 2022 is Rs 540, for 2023 is Rs 630, for 2024 is Rs 760, for 2025 is Rs 910, for 2026 is Rs 1,210, and for 2030 is Rs 2,600.
What is the prediction of Tata Motors share?
Tata Motors share price prediction for 2022 is Rs 540, Tata Motors share price prediction for 2023 is Rs 630, Tata Motors share price prediction for 2023 is Rs 760, Tata Motors share price prediction for 2025 is Rs 910, Tata Motors share price prediction for 2026 is Rs 1,210, and Tata Motors share price prediction for 2030 is Rs 2,600.