Tata Motors has laid out an aggressive plan to expand its presence in the Electric Vehicles space. Over the next five years, Tata Motors unit Jaguar Land Rover, will invest a sum of 15 billion pounds in the EV business.
JLR is planning to launch three electric vehicles over the next two years, including the electric range rover later this year, and a mid-sized all-electric SUV in the Range Rover series in 2025.
Tata Motors is confident of improving JLR's balance sheet and earnings going forward. JLR has guided for double-digit EBIT margin by financial year 2026, which is in-line with the earlier guidance.
The company plans on achieving the same through aggressive cost cuts and better product mix.
In an update to the global media at JLR’s Gaydon centre, Chief Executive Officer Adrian Mardell reaffirmed the business’ commitment to its Reimagine strategy, which will reposition the company as an electric-first, modern luxury carmaker by 2030, as it makes strides towards its financial goals of achieving a net cash positive position by financial year 2025 and double-digit EBIT by 2026.
One must keep in mind that JLR currently has net debt of 3.8 billion pounds as of December 2022.
Brokerages remain constructive on Tata Motors and its prospects. BofA Securities has a buy rating on the stock with a price target of Rs 475. Macquarie has also maintained its outperform rating on the stock with a price target of Rs 510.
Morgan Stanley's overweight rating on the shares of Tata Motors comes with a price target of Rs 513.
Shares of Tata Motors are among the best performers on the Nifty 50 index, having gained nearly 20 percent so far on a year-to-date basis.
Also Read: Tata Motors hikes prices for the third time in 2023 - Passenger Vehicles to be expensive from May 1
(Edited by : Hormaz Fatakia)
First Published: Apr 20, 2023 8:58 AM IST
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