1:5 Split: Tata Auto Stock Issues Tax Update On Dividend, Buy For TP Rs 1235: Sharekhan

Tata Motors Ltd share today witnessed marginal decline of 0.19% to Rs 951.15 per share. Tata Motors share fell 3.75% in last 2-weeks and soared over 81% in last 1-year. Today, the auto giant issued an update on tax deduction on dividend. Earlier on May 10, 2024, Tata Motors reported a jump of 46% in its net profit for the quarter ended March 2024 to Rs 17,529 crore as against the net profit of Rs 12,033 crore declared in the corresponding quarter of last year.

It also recommended a final dividend of Rs 6/share. If the dividend is declared a the company's upcoming AGM, it will be paid to eligible shareholders on or before June 28, 2024. Life Insurance Corporation Of India (LIC) has 3.01% stake in Tata Motors with 100,181,023 shares of the company. More details below:

Tata Motors Issues Tax Deduction Update: As per the regulatory filing, "1. For Resident Shareholders: Tax is required to be deducted at source under Section 194 of the Act, at the rate of 10% on the amount of dividend where Shareholders have registered their valid Permanent Account Number (PAN). In case, Shareholders do not have PAN / have not registered their valid PAN details in their demat account/ PAN is invalid or declared to be inoperative on non-linking of PAN with Aadhaar/ Shareholder is a specified person under Section 206AB, TDS at the rate of 20% shall be deducted under Section 206AA/ 206AB of the Act.

https://www.bseindia.com/xml-data/corpfiling/AttachLive/da9cc639-7d00-47b3-a1b8-38e0f8d209cd.pdf

b. Resident Non-Individuals: No tax shall be deducted on the dividend payable to the following resident non-individuals where they provide details and documents as per the format attached in Annexure 3." For more details pertaining to tax deduction, please click on the link:

Tata Motors Share Performance: The 52-week high price of Tata Motors shares on BSE is Rs 1065.60 per share (as on 05/03/2024) and 52-week low price is Rs 467.20 per share (as on 21/04/2023). Tata Motors shares gained 40% in last 6-months, soared 81% in last 1-year, offered attractive return of 127% in last 2-years, and jumped 203% in last 3-years.

Tata Motors Technical: Score is 53.5 highlighting it is technically moderately strong. RSI of Tata Motors is 42.1. RSI below 30 is considered oversold and above 70 overbought. Number of FII/FPI investors increased from 1058 to 1146 in Mar 2024 qtr. Mutual Funds have decreased holdings from 10.37% to 9.50% in Mar 2024 quarter. Number of MF schemes decreased from 43 to 42 in Mar 2024 quarter. FII/FPI have increased holdings from 18.62% to 19.20% in March 2024 quarter. Number of FII/FPI investors increased from 1058 to 1146 in March 2024 quarter.

Tata Motors Dividend History: Tata Motors announced 16 dividends since July 3, 2002. In last 1-year, TML announced an equity dividend amounting to Rs 2.00 per share. At the current share price of Rs 951.15 per share, Tata Motors offers a dividend yield of 0.21%.

Tata Motors Stock Split History: TML split face value of shares once since September 12, 2011. It last split the face value of shares from Rs 10 to Rs 2 in 2011.The share traded ex-split as on September 12, 2011, according to Trendlyne.

Sharekhan Recommends Buy Call: According to the brokerage firm, "The management is looking for double-digit EBITDA margins in both CV and PV businesses. Further, it is sustaining its leadership position in electric car business Tata Group company is planning to set up Li-ion cell plant. In the CV business, the company is continuing to focus on retail sales performance with value added product offering, which we believe would help its CV division sustain profitability."

We maintain our Buy on Tata Motors Ltd (TML) with a revised PT of Rs 1235 on expecting continued improvement in JLR, PV and CV businesses and reduced net automotive debt, added the analyst.

Disclaimer: The stock has been picked from the brokerage report of, Sharekhan, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.