Tata Motors’ market capitalisation crossed INR 4 lakh crore for the first time on Thursday, with shares rising 6.2% to close at INR 1,091 after an upgrade by Nomura. The firm’s A-ordinary shares, which have differential voting rights, saw a 6.5% increase, closing at INR 747 apiece. This surge followed Nomura raising the price target for Tata Motors from INR 1,141 to INR 1,294, maintaining a ‘buy’ rating.
Nomura cited that Jaguar Land Rover’s (JLR) execution could lead to significant upsides for the stock. They added that the proposed demerger is expected to unlock value for Tata Motors’ commercial vehicle business. The company announced earlier that it will form two separate entities, one for the commercial vehicle business and another for passenger vehicles, including JLR.
In May, Tata Motors obtained shareholders’ approval for a scheme of arrangement that involves converting A-shares into ordinary shares. This move aims to simplify and consolidate the company’s capital structure and facilitate the demerger process.
(Source- Business Standard)
