New Delhi: On the back of a strong performance across its key business segments, Tata Motors stock has significantly outperformed key indices with 204 per cent return in the last 36 months versus 50 per cent return in the Nifty, Motilal Oswal Financial Services said in a report.
“We have already factored in most of the positive triggers in our estimates. While the business demerger seems to be a step in the right direction, we do not foresee any need to revisit our TP, which is already based on SoTP valuation”, it said. Tata Motors board approved the proposal to demerge the company into two separate listed entities, viz a) CV and its related investments and b) PV, including India PV, EV, JLR, and related investments.
This comes across as a logical progression of separate reporting of the CV and India PV financials run by their respective CEOs (since 2021).