Tata Motors, Tata Motors DVR gain up to 8%
Published On: Tuesday, February 23, 2021 | By: Team KnowMyStock
Shares of Tata Motors edged higher by 8 percent to Rs 329 on the BSE in intra-day trade today(23rd Feb.2021) on the back of heavy volumes after the company outlined an ambition to reach double-digit commercial vehicle (CV) margins and high single-digit passenger vehicle (PV) margins in coming years. It maintained plans to attain zero debt (excluding leases) by FY24 through strong operating cash flows and divestments. In its virtual 2021 investor event for Indian operations, Tata Motors guided for sustainable free cash flow (FCF) generation in CVs and PVs (from FY24E onwards for the latter). The company said CV demand tailwinds are converging but peak industry volumes are two to three years away and the company would continue to lead 4-W electrification in India.
“We came away enthused by the exciting progress that the company has been making in its domestic CV, PV turnaround efforts. Tata Motors reiterated its commitment towards near-zero automotive net debt level by FY24E and is open
"Tata Motors expects the overall domestic CV industry to grow by 36-38 percent in FY22, with M&HCV growing at 60-65 percent. Replacement demand is yet to return due to apprehension on the viability of BS-VI technology, and an increase in the CV population. Demand is driven by freight growth. The latter should be good as economies recover. Also, recovery in infra and real estate will be supportive," experts added.
Tags: Tata Motors Markets
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