Tata Motors Share price today: Morgan Stanley assigned ‘overweight’ call on Tata Motors after the Indian automaker said that it will split into two listed companies- commercial vehicle (CV) and passenger vehicle (PV) businesses as separate entities. The global brokerage firm said that the demerger decision reflects Tata Motor’s confidence in the PV segment and shows that is is self-sustaining and could lead to better value creation for the company.
Morgan Stanley has assigned a target price of ₹1,013, an upside of 25% from the last close of 988. According to analysts, Jaguar and Land Rover and the domestic PV business will also have synergies in the electric vehicle era.
Tata Motors demerger details
Tata Motors said that after the demerger, one company will house passenger and electric vehicles as well as Jaguar Land Rover businesses while the commercial vehicle business and related investments will be a different entity. Tata Motors is India’s market leader in the commercial vehicles space, and its shares have risen by about 27% in 2024. Last year, the share prices experienced a more than double increase.
The arrangement for the demerger shall be placed before the board in the coming months. It will then be subject to all necessary shareholder, creditor, and regulatory approvals. This could take another 12-15 months to complete, the company said.
Tata Motors demerger: Impact on shareholders
Following the split, shareholders will continue to have an identical shareholding in both listed entities, the company said.
Chairman N Chandrasekaran said that the demerger will help better growth prospects for employees and enhance value for shareholders.
