Tata Motors will Split into two listed entities; it will split into Commercial Vehicle and Passenger Vehicle which will be listed in Stock Market. Tata Motors has informed that they are demerging the Company to enhance the focus on Passenger vehicles and make it sustainable.
TATA MOTORS: IS IT VALUE UNLOCKING?
Tata Motors was trading at 70/- per share during the CORONA time. Tata Motors has given almost 15x in 4years. Tata Motors has given more then 100% in Last 1year.
Tata Motors is trading at all-time high; the process of demerger may take months to complete the process. Tata Motors has almost 75% share in Electric Vehicles. Tata Motors has increased its stake from Single digit to double digit in Passenger vehicle segment.
Brokerages and Fund Houses have target ranging from 700-1100 for Tata Motors. Investors holding for long term, can stay with Tata Motors as the Company is announcing new electric models and passenger vehicles.
WHY TATAMOTORS ANNOUCED DEMERGER NOW?
As per the sources, Tata Motors announced demerger now as the Passenger Vehicles sales are increasing from single digit to double digit. Tata Motors commercial vehicle segment has a market share of 75% and increasing steadily. Tata Motors JLR Sales revenue constitutes more then 70%.
Conclusion –
If You are a long term investor, you can hold the Tata Motor Stock, if you are a short-term investor or trader, you can see some profit booking in near term.
Disclaimer –
Please consult your financial advisor before taking an investment decision.