Morgan Stanley’s ‘Overweight’ Recommendation Aligns with Tata Motors Strategic Overhaul and Demerger Plans :
Morgan Stanley has taken note of the recent developments in Tata Motors’ stock performance and has responded by recommending an ‘overweight’ stance. This recommendation follows Tata Motors disclosure of its intention to undergo a significant organizational overhaul, opting for a division into two separate entities dedicated to commercial vehicles (CV) and passenger vehicles (PV) respectively. According to insights from the global brokerage firm, this strategic restructuring underscores Tata Motors’ belief in the self-sustaining nature of the PV segment, with an expectation of generating increased value for the company.
Tata Motors Share Focus: Morgan Stanley Backs Overhaul and Division, Sets Bullish Target Price
In focus today are Tata Motors shares, with Morgan Stanley setting a target price of ₹1,013, signalling a potential 25% upside from the previous close at ₹988. Analysts also highlighted potential synergies in the electric vehicle (EV) realm, specifically with Jaguar and Land Rover alongside the domestic PV business.
Tata Motors Share Surge: Morgan Stanley Applauds ‘Overweight’ Recommendation Amidst Restructuring
Outlined details of the demerger reveal that post-restructuring, one company will amalgamate passenger and electric vehicles with Jaguar Land Rover, while the commercial vehicle business and related investments will form a separate entity. Tata Motors, a dominant force in India’s commercial vehicles sector, has seen a commendable 27% surge in its shares in 2024, building on the previous year’s impressive doubling of share prices.
However, the demerger process is a comprehensive one, with the board set to review the arrangement in the coming months.
Following this, the demerger proposal will go through thorough examination and approval procedures, encompassing evaluations by shareholders, creditors, and regulatory authorities. According to the company’s official statement, the entire process of demerger is projected to extend over an additional period of 12-15 months.
Tata Motors’ Restructuring Initiatives Garner Morgan Stanley’s ‘Overweight’ Endorsement
Despite being a constituent of all passive indices, Tata Motors is anticipated to exit Nifty 50 and Sensex once the demerger concludes. The Board of Directors, in a meeting on March 4, approved the demerger proposal, aiming to establish two separate listed companies—one for Commercial Vehicles and related investments and the other for Passenger Vehicles, encompassing PV, EV, JLR, and related investments.
With respect to the effect on shareholders, Tata Motors guarantees that following the demerger, shareholders would continue to hold the same number of shares in both listed companies. This strategic change, according to Chairman N Chandrasekaran, is expected to improve employee growth prospects and raise shareholder value.
Godrej Properties Ltd:
A significant player in the real estate market, Godrej Properties Ltd. said on March 4 that it had completed preparations to begin construction on a large-scale profit-sharing township project in North Bengaluru. In its regulatory filing, the business stated that it anticipates the venture to have a booking value of around ₹5000 crore.
The roughly 62-acre property is situated in a sought-after neighbourhood in North Bengaluru.
The project’s saleable area is estimated to be around 5.6 million square feet, mostly made up of upscale units in various layouts.
Situated in one of Bengaluru’s most sought-after neighbourhoods, this land lot has great access to the Kempegowda International Airport, a planned metro station, a number of residential and commercial buildings, a Special Economic Zone, and vital social infrastructure
Also Read : Two Upcoming Diseal Engine SUVs : डीजल इंजन वाली दो SUVs जल्द लॉन्च होंगी भारतीय बाजार में
