Tata Motors share worth goal raised by Jefferies after Punch SUV launch


Tata Motors has not too long ago launched a brand new sub-compact SUV, Punch, beginning at Rs5.49 lakh (ex-showroom) worth. Tata Punch has been rated among the many most secure car in India with 5- star and 4-star scores, respectively, for grownup and little one occupant safety on NCAP requirements.

Tata’s new sub-compact SUV Punch holds sturdy quantity potential because it brings SUV physique model to a lower cost vary, which has up to now been largely addressed by hatchbacks and compact sedans, mentioned Jefferies in a be aware.

“Punch seems properly styled for its worth and has obtained excessive security scores. We proceed to love Tata, given its bettering India franchise, early management in India EVs, and JLR focus returning to higher-margin Land Rover model,” it mentioned. 

Jefferies has retained its ‘Purchase’ ranking on the Tata Motors inventory and has revised its goal worth upwards of 625 per share (earlier 565). Its has an upside situation goal worth of 800 whereas its draw back situation worth goal is 415 apiece.

Tata’s PV franchise took successful within the final decade, as market share fell from 15% in FY10 to five% in FY20. Its new SUV focussed portfolio, improved product styling, and model positioning round security have fueled a robust turnaround, with market share recovering to 11% in 1HFY22, and Jefferies sees additional upside potential from Punch. 

Indian passenger car (PV) market has been quickly shifting in the direction of SUVs; share of SUVs in whole business volumes has risen from 14% in FY12 to 21% in FY16 and additional to 47% in 1HFY22. “Availability of lower-priced well-styled SUVs akin to Tata’s Punch ought to speed up the shift from premium hatchback and small sedan segments, which type about 35% of business volumes,” the be aware added.

The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint.

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