Morgan Stanley: The demerger of Tata Motors has received the support of global brokerage firm Morgan Stanley. Morgan Stanley has given overweight call on Tata Motors. The brokerage firm has predicted a good rise in the shares of Tata Motors. Tata Motors had announced on Monday that it will run its commercial vehicle and passenger vehicle businesses under two separate companies.
Morgan Stanley increased the target price
Morgan Stanley, while expressing its estimation on Tuesday, said that the decision of demerger shows that the company is confident about its business. Now Tata Motors feels that it can do business independently in the passenger vehicle segment. This will increase the value of the company. Experts have set the target price for Tata Motors at Rs 1013. On Monday it closed at Rs 988. The brokerage firm has predicted a jump of about 2.5 percent.
Tata Motors shares became rocket
On Tuesday afternoon, shares of automobile sector giant Tata Motors were trading at Rs 1029.40, higher than Morgan Stanley's estimate. There has been an increase of about 4.34 percent in comparison to the previous session. Morgan Stanley believes that the company's British subsidiary Jaguar Land Rover and domestic passenger vehicle business will also do well in the electric segment.
Information given in regulatory filing
This decision was taken in the meeting of the board of directors of Tata Motors, the automobile company of Tata Group. Regulatory FilingsIt was told that after this demerger, the commercial vehicles business of Tata Motors will be incorporated into a separate company. Passenger vehicles, electric vehicles, JLR and related investments will be included in the second company. Since 2021, all these businesses are working independently under the supervision of different CEOs. Tata Sons Chairman N Chandrasekaran had said that this demerger will increase growth prospects for employees along with better services to customers and will also increase value for shareholders.
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