Morgan Stanley goes ‘overweight’ on Tata Motors on demerger decision

Morgan Stanley goes 'overweight' on Tata Motors on demerger decision

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Morgan Stanley believes that Jaguar, Land Rover, and the company’s domestic PV business will benefit from working together in the electric vehicle era.

Morgan Stanley Recommends ‘Buy’ for Tata Motors Following Business Split: Analysts Bullish on EV Potential

Morgan Stanley, a big brokerage firm, said “buy” for Tata Motors after they decided to split their commercial vehicle and passenger vehicle businesses into two separate companies.

The company believes that this decision shows they trust the solar energy part of their business to keep growing on its own and make more money for the company. Analysts think the stock could go up to Rs 1,013, which is 2.5 percent higher than the last closing price of Rs 988. Analysts believe that Jaguar and Land Rover, along with the company’s domestic PV business, will benefit from working together in the electric vehicle (EV) era.

The company plans to separate its businesses through a legal process overseen by the NCLT (National Company Law Tribunal). Shareholders of Tata Motors Limited will have the same ownership in both resulting companies after the separation. However, the process of getting approvals from shareholders, creditors, and regulators may take an extra 12-15 months.

 

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