Sharekhan's research report on Tata Motors
Consolidated Q2FY23 results were a mixed bag, with top-line ahead of expectations, while PAT below expectations. Overall performance and FCF are expected to improve gradually, driven by a positive business outlook, new launches, easing chips shortage situation, cooling commodity prices, and favourable macro-economic outlook. Management maintained its long-term targets with a caution on inflation and geopolitical situations. TAMO’s focus on EVs continues to grow multifold in Q2FY23; electric CVs are getting ready for the next leg of growth.
Outlook
We maintain Buy with an unchanged PT of Rs. 516, driven by expected recovery in volumes and operational improvement across its business verticals and geographies in H2FY23E.
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