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1:1 Split Soon: TATA's Auto Stock Is Rs 11.95 Away From Rs 700 Mark, To Trend This Week; BUY For Target?

Tata Motors, an automobile giant of the Tata Group, is going to trend this week due to its upcoming June monthly sales data. Ahead of the sales announcement, Tata Motors' share price crossed the Rs 900 mark and surpassed many brokerages' target. This heavyweight auto stock is nearing its Rs 700 mark.

Tata Motors Share Price:

After market hours on June 30th, Tata Motors' share price closed at Rs 688.05 apiece on BSE, marginally up 0.20%, with a market cap of Rs 2,53,303.02 crore. From the current market price, the stock is now Rs 11.95 away from hitting its Rs 700 mark. However, during the trading session on Monday, Tata Motors crossed the Rs 690 levels to hit an intraday high of Rs 691.95 apiece before correcting.

However, overall in June, Tata Motors' share price ended down by 3.3%.

The stock's 52-week high and low are at Rs 1,179.05 apiece and Rs 542.55 apiece respectively. The stock's price-to-equity ratio is at 46.46x, while return on equity is at 17.81%.

Tata Motors Sales Data:

In general terms, all auto companies on BSE and NSE will announce their monthly sales data from July 1st to 2nd including Tata Motors. Hence, the auto stocks like Tata Motors will be in focus.

This time, Tata Motors will release its June 2025 sales data.

Tata Motors' domestic sales declined sharply as the company sold 67,429 units in the Indian market in May 2025, down 10% YoY from 75,173 units in the same month last year. This slowdown was mainly because of the overall dip in both the passenger vehicle (PV) and commercial vehicle (CV) segments.

Tata Motors Split:

During the 80th annual general meeting (AGM) of Tata Motors, Chairman N Chandrasekaran shed light on the demerger plans. He said the company will be split into two listed entities soon. One will be focused on commercial vehicles (CV) and the other will emphasize on passenger and JLR cars segment.

As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio to 1:1.

Tata Motors Share Price Recommendation:

Due to the latest performance, Tata Motors has met Motilal Oswal's target.

In its note, Motilal said, "JLR continues to face several headwinds, such as tariff wars and resultant USD depreciation vs. GBP, uncertainty over EV transition, challenging market conditions in China, and rising warranty costs. As a result, management has lowered its EBIT margin guidance for FY26 to 5-7% from 10% earlier. It has also reduced its FCF guidance to nil from GBP1.8b earlier. TTMT has also indicated that it is working hard to improve efficiencies across the firm, with specific enterprise missions to drive the firm's transformation amid headwinds. These initiatives could result in cost savings of GBP1.4b p.a. during 2HFY26 to FY27-28 and help TTMT to return to its earlier EBIT margin target of 10% over time. While our estimates were already lower than the consensus, we have reduced our FY26 EBIT margin assumption for JLR to 6% (earlier 6.9%), which has led to a 10% cut in our FY26 earnings estimates. We have maintained our FY27 estimates at this stage. Given the multiple headwinds highlighted above, we reiterate Neutral with FY27E SOTP-based TP of INR690."

While analysts at Emkay Global has set Rs 750 target on Tata Motors. They said, "We cut FY26E/27E consol EPS by ~15%, to factor in the challenging demand environment at JLR and the curtailed EBIT margin guidance. We build in £27.5bn revenue (5% YoY fall) with 6.4% EBIT margin and FCF of -£528mn. Over the last 5 years, JLR has significantly strengthened its business profile (largely resilient volume, high profitability) and balance sheet (net cash), thus positioning itself well to withstand near-term challenges. We maintain BUY on TTMT while trimming out SoTP-based TP to Rs750."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.

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