Why Brokerage Sees Tata Motors Shares Going Up Another 13%
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Tata Motors‘ share price was muted on Tuesday morning as the stock turned ex-dividend.

What Happened: The auto major in May had announced a total of ₹6 per share dividend (₹3 final dividend and ₹3 special dividend).

The ex-dividend date is the day on which the equity share price adjusts to reflect the upcoming dividend payout. On this date, the stock becomes ex-dividend, meaning it no longer carries the value of its next dividend payment.

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Latest Analyst Take: Kotak Securities in its latest note on the Tata Group stock maintained its “add” rating with a price target of ₹1,100. The target indicates an around 13% upside from the stock’s last closing price.

The brokerage said Jaguar Land Rover‘s (JLR) EBITDA margin improved by 430 basis points year-on-year in FY24, reaching 15.9%. The luxury car maker also generated free cash flow (FCF) of £2.30 billion (around ₹24,000 crore) in FY24 compared to £0.50 billion (around ₹5,300 crore) in FY23. T

The domestic brokerage firm also highlighted that the net profit of the China joint venture came in at £36 million (₹38.6 crore) in FY24, up from £22 million (around ₹23.3 crore) in FY23. The analysts expect earnings per share to grow by 15.1% in FY25 and by 11.0% in FY26.

Price Action: Tata Motors’ share price was up 0.24% to trade at ₹978.30 in early trade on Tuesday.

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