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NEW DELHI: Maybank Kim Eng Securities, which is a subsidiary of Malaysian Maybank, sees the fair value of Tata Motors shares at half its price today as it believes concerns over Jaguar Land Rover still persist.
In a post-earnings note released on Thursday, Jigar Shah and Vikram Ramalingam, analysts at the brokerage, said stock is overvalued considering multiple headwinds.
“The concern on its high debt levels remains and the need to incur elevated capex due to a shift to electric vehicles in the EU by 2030 will pressure its cash flows. Tata Motor’s EV/Ebitda of 6x FY22E is at a premium to European peers and versus its long term EV/Ebitda of 4x is unjustified,” the duo said.
The Nifty futures on Singapore Exchange traded 42 points higher at 13,763 in Monday s morning session, indicating a positive start for benchmark indices. Here are the top stocks to track in today s session:
Budget-related stocks: Stocks of infrastructure, construction, housing finance companies, along with PSU stocks, financials, healthcare and power and energy-related stocks could remain in focus today.
Tata Motors: The automaker on Friday reported a 67.52 per cent rise YoY in its consolidated net profit to Rs 2,941.48 crore for the third quarter ended December 31, aided by pent-up demand amid steady recovery in the economy.
Tech Mahindra: The company reported a 14.3 per cent YoY jump in its December quarter net profit at Rs 1,309.8 crore driven largely by improving profit margins while the revenues remained stable.
Read more about Stocks to watch: IRFC, Tata Motors, IRCTC, TVS Motors, IndiGo, Airtel on Business Standard. InterGlobe Aviation reported a net loss of Rs 620 crore in the third quarter of pandemic-struck 2020-21 financial year
Read more about Auto stks dip on profit booking as govt proposes green tax for old vehicles on Business Standard. Ashok Leyland, Bharat Forge and Tata Motors from the auto index were down in the range of 3 per cent to 4 per cent.