The price correction of Tata Motors’ shares due to US tariffs, but the strong financial change keeps the long -term perspectives intact | Photo credit: Danish Siddiqui
Objective: ₹ 800
CMP: ₹ 621.50
The price of Tata Motor shares has corrected Nealry 27 percent in the last 3 months. This includes the 17 percent drop since March of March, when the United States announced 25 percent tariffs in imports of car parts, exacerbating investors’ concerns about the prevailing weakness in China (North America is the largest marking of 325 percent of the fiscal year 2015.
Amid the noise around the macros, we highlight that the implicit EV/s of the JLR fiscal year to approximately 0.7x are close to the historical minimums of approximately 0.5x (seen in the phase of fiscal year 2016-21 of the levels of increasing debt and covid, operational and operational and operational and operational and testimony and witnesses in the objective of fulfilling the objective of FY25 of FY25 of FY25).
Even with assumptions of bear cases of a 25 percent drop in US sales. 1.1x in fiscal year 22.
We cut the FY25E/26º/27 EPS in approximately 5-6 percent to take part of the potential weakness (5 percent fall in US sales, non-American sales). We keep the purchase while we reduce our TP (SOTP based on SOTP) to ₹ 800.
Posted on April 17, 2025