Tata Motors share price: Morgan Stanley's 'overweight' call on demerger decision
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.
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".
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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