Tata Motors - Increasing Focus On EVs, Profitability: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We attended Tata Motors Ltd.’s India Investor Day and came out positive on the company's India strategy. Management highlighted continued growth in the commercial vehicle and passenger vehicle segment but with moderation in the growth rate. Medium and heavy commercial vehicle demand outlook is strong and Tata Motors is confident of maintaining its lead in sports utility vehicles. We liked the strong focus on the margins across division to grow in a profitable manner by disrupting standard industry practices in the CV segment. EVs have become a big focus point for Tata Motors with a separate session being planned for highlighting increased awareness within the company related to climate change and holistic measures being adopted by the company to become net zero by 2040 in PV and 2045 in CV division. We remain positive on Tata Motors given-Jaguar Land Rover’s volume ramp-up resulting in strong revenue, profitability and free cash flow (aided by high order book), commercial vehicle segment (on domestic side) benefitting from ongoing upcycle, operating leverage and tailwinds from lower commodity costs and lower discounting andstrong market share in PV segment (13.5% versus 8% in FY21) led by revamped portfolio, rising SUV share and rising EV penetration. We expect revenue/Ebitda compound annual growth rate of 12%/32% over FY24/25E..Click on the attachment to read the full report:.Tata Motors - India Business Focuses On Profitable Growth: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Motors - Increasing Focus On EVs, Profitability: Prabhudas Lilladher

New models in the electric passenger vehicle space to drive higher EV market share.

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