Analysts view of Tata Motors’ Q2

Domestic brokerage ICICI Securities said that Tata Motors’ Q2 performance was a mixed bag with JLR margin back to 10%; however, India margin was impacted by 200 bps (QoQ) due to lag effect of higher input cost contracts trickling into numbers. The brokerage has maintained “BUY” on the stock, with a lower price target of ₹571, compared to earlier estimates of ₹646.

Analysts at Prabhudas Lilladher also maintained their positive stance on Tata Motors, citing improved product mix at JLR. The agency has given a “BUY” call on the stock, with a target price of ₹520, saying that the company’s market share in PV segment rose to 14.2% vs 6.9% in FY19, led by revamped portfolio, customer preference for SUVs, and rising EV penetration. “The commercial-vehicle (CV)volumes gains from cyclical upturn, improving fleet utilisation, freight rates as well as revival in JLR and strong order book to benefit and drive free cash flow (FCF) generation,” it said.

Tata Motors to delist ADS from NYSE

The company in an exchange filing on November 9 said that it will delist its American Depositary Shares (ADS) from the New York Stock Exchange from January 2023. The last trading day of the ADS on the NYSE is likely to be January 23, 2023.

Tata Motors said that since the issuance of ADSs in 2004, the company has witnessed a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India. “The Company has further considered the consistent drop in the number of ADSs outstanding as a percentage of its outstanding Ordinary Shares. Therefore, the rationale for ADS listing in the United States has significantly diminished,” it said.

As per the company, the delisting of ADS will help simplify its financial reporting requirements and reduce administrative costs. Upon delisting of its ADSs, the company will concentrate trading of its equity shares on the BSE Limited and the National Stock Exchange of India Limited, it said.

American Depositary Shares

Tata Motors share skids 5% post Q2; to delist ADS from NYSE