Tata Motors Share Price Today: Tata Motors has announced the split of its business into two segments – commercial vehicles (CV) and passenger vehicles (PV). According to the company’s assessment, this will be a big step but market analyst rating agency Nomura has given a big statement on this step of Tata Motors. There is decent demand for CV, JLR and PV vehicles in India and all rivals have their own markets. Therefore, this demerger plan of Tata Motors will not be able to do much.
Tata Motors Share Price Today
According to the brokerage firm, Tata Motors could become India’s second largest PV manufacturer by financial year 2025-26 as it aims to increase its penetration in the electric vehicles (EV) sector in the country. Nomura has currently maintained the target price of ₹1,057 on Tata Motors.
Tata Motors Share Price Today: Currently, with more than 70% market share, Tata Motors is actively contributing to the growth of the EV sector in India. The company aims to introduce 10 EV models in its portfolio by FY 2026 and make 50% or half of its total vehicle production EVs by 2030. If these plans are successfully implemented then adequate value creation capability can be achieved.
Despite the PV business having an EBITDA margin of 6.5%, the overall margin has been impacted by negative EV margin (-8.2% in Q3). Nomura expects EV margins to improve over time, especially as losses from product development costs subside. Additionally, the CV business may see a re-rating due to growing market share and increased profitability.
Tata Motors Share Price Today: The demerger, to be executed through the NCLT arrangement scheme, is seen as the next logical step after the first subsidization of PV and EV businesses in 2022.
The demerger will be presented to the TTMT Board of Directors for consideration and approval from shareholders, creditors and regulatory authorities will be required to complete it. If everything goes well, the process will take 12 to 15 months to complete.
