Tata Motors: Morgan Stanley believes that the company’s British arm Jaguar and Land Rover, as well as its domestic PV business, will have “synergies in the EV era.”
Morgan Stanley, a global trading firm, proclaimed Tata Motors to be “overweight” when it announced that it would divide its passenger vehicle (PV) and commercial vehicle (CV) divisions into two distinct companies.
The company believes that the move shows its faith in the PV segment’s ability to support itself and has the potential to improve value creation for the business. A target price of Rs 1,013, an increase of 2.5 percent from the previous close of Rs 988, has been set by analysts.
According to analysts, the company’s domestic PV business and its British affiliates, Jaguar and Land Rover, will benefit from “synergies in the EV era” when it comes to electric vehicles (EVs).
Also Read: Paytm Payments
According to a recent filing by the company, the proposed demerger will be facilitated through an NCLT (National Company Law Tribunal) scheme of arrangement. Following the demerger, all shareholders of TML (Tata Motors Limited) will maintain identical shareholding in both resulting listed entities. However, the company has pointed out that securing necessary approvals from shareholders, creditors, and regulatory authorities for the demerger could prolong the process by an additional 12-15 months.
Disclaimer: The information provided by Stockeasynow about the stock market is purely informative and should not be interpreted as financial advice. Before making any investing decisions, readers are advised to speak with a licensed financial advisor.
