Hold Tata Motors, target price Rs 146: Prabhudas Lilladher

Prabhudas Lilladher has given a hold rating to Tata Motors with a target price of Rs 146. The share price moved up by 3.32 per cent from its previous close of Rs 135.70. The stock’s last traded price is Rs 140.20.

Tata Motors Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 43168.41 Crore) operating in Auto sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 52839.02 Crore, up 67.84 % from last quarter Sales of Rs 31481.86 Crore and down -18.41 % from last year same quarter Sales of Rs 64763.39 Crore. Company reported net profit after tax of Rs -348.16 Crore in latest quarter.

Investment Rationale
The brokerage maintains Hold with a revised SoTP based target price of Rs146 (from Rs138, Sep-22), where it values JLR and S/A business at 3.5x and 11x EV/EBITDA respectively.

Promoter/FII Holdings
Promoters held 42.39 per cent stake in the company as of Sept 30, 2020, while FIIs held 15.85 per cent, DIIs 13.06 per cent and public and others 28.71 per cent.