Tata Motors Share Price: Tata Group-backed automobile giant Tata Motors’ share price ended the trading week from April 28th to May 2nd, in red.
Nonetheless, the stock’s overall April performance is bullish, due to which, it is closing the gap towards the Rs 700 mark. Going ahead, the sentiment in the stock will be fuelled by its NCDs issuance of Rs 500 crore, upcoming Q4 results and dividend payout. Any development in its demerger plan will be keenly watched.
Tata Motors Share Price:
After market hours on Friday, May 2nd, Tata Motors’ share price closed at Rs 651.85 apiece, up by 1.20% on BSE, with a market cap of Rs 2,39,968.72 crore. However, the stock’s overall weekly performance from April 28th to May 2nd was down by 2.5%. Noteworthy, Tata Motors’ monthly performance is up by 6.2%.
Hence, the stock is now just Rs 48.15 away from hitting the Rs 700 mark.
Tata Motors NCDs Issuance:
In a meeting held on May 2nd, the company’s board of directors approved fundraising through issuance of Non-Convertible Debentures (“NCDs”). The transaction will aggregate to Rs 500 crore.
The fundraise will be in two tranches with a coupon rate of 7.08% each. Up to 50,000 NCDs will be issued at a face value of Rs 1 lakh.
The first tranche will have up to 30,000 NCDs amounting to Rs 300 crore, will be issued on May 13, 2025 with maturity period scheduled on May 11, 2028.
The second tranche will be of 20,000 NCDs worth Rs 200 crore and will be issued on May 13 with tenure ending on May 12, 2028. This tranche will be issued on May 13, 2025.
Both the NCDs have received healthy rating of “CRISIL AA+/Stable” by CRISIL Ratings Limited.
Tata Motors April 2025 Sales:
During April month, Tata Motors posted sales of 72,753 units in both domestic and international market, which is lower from 77,521 units sold in April 2024. Total domestic sales witnessed decline of 7% YoY. Meanwhile, total commercial vehicles dropped by 8 YoY.
Tata Motors Q4 Results:
The auto giant has fixed Tuesday, May 13, 2025, as the record date for considering and approval of Audited Financial Results (Standalone and Consolidated ) for the fourth quarter and financial year ending March 31, 2025 alongwith the Reports of the Auditors thereon.
For Q4FY25, Tata Motors is likely to witness a margin contraction of 120bps YoY, led by global headwinds impacting the JLR segment, as per Elara Capital’s preview note.
Tata Motors Dividend:
On May 13th, Tata Motors board will also consider a dividend, if any, on the Ordinary. Shares of the Company for the financial year ending March 31, 2025, at the forthcoming 80th Annual General Meeting of the Company.
Since June 2003, Tata Motors has declared about 17 dividends, as per Trendlyne data. In the past 12 months, the company delivered a hefty Rs 6 per share dividend. Its current dividend yield is around 0.93%.
Tata Motors Split:
The company is on the journey to split its business. The company’s demerger will be of two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity. As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio 1:1.
Tata Motors Share Recommendation:
The consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. The average 1-year target price is at Rs 811.70 apiece, signalling nearly 26% potential upside ahead.