{"id":18993,"date":"2024-03-05T18:59:48","date_gmt":"2024-03-05T13:29:48","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=18993"},"modified":"2024-03-05T18:59:48","modified_gmt":"2024-03-05T13:29:48","slug":"tata-motors-to-split-pv-and-cv-businesses","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/tata-motors-to-split-pv-and-cv-businesses\/","title":{"rendered":"Tata Motors to Separate Passenger and Commercial Vehicle Businesses, Brokerages Optimistic about Demerger"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/tata-motors-to-split-pv-and-cv-businesses\/#Tata_Motors_to_Split_PV_and_CV_Businesses_Brokerages_Bullish\" title=\"Tata Motors to Split PV and CV Businesses, Brokerages Bullish\">Tata Motors to Split PV and CV Businesses, Brokerages Bullish<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/tata-motors-to-split-pv-and-cv-businesses\/#Brokerages_are_optimistic_about_the_demerger\" title=\"Brokerages are optimistic about the demerger.\">Brokerages are optimistic about the demerger.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tata_Motors_to_Split_PV_and_CV_Businesses_Brokerages_Bullish\"><\/span><strong>Tata Motors to Split PV and CV Businesses, Brokerages Bullish<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>On March 5, 2024, Tata Motors made an announcement to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into separate entities.<\/em><\/p>\n<p>This decision was welcomed by most brokerages, who see great potential for both businesses to create more value and have greater strategic flexibility.<\/p>\n<p><em>Following this announcement, <a href=\"https:\/\/univest.in\/blogs\/tata-motors-stock-jumps-on-upgrades-strong-sales\/\">Tata Motors stock<\/a> price rose by 4%, reaching a 52-week high of Rs 1,027.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Brokerages_are_optimistic_about_the_demerger\"><\/span><strong>Brokerages are optimistic about the demerger.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/J._P._Morgan\" rel=\"nofollow noopener\" target=\"_blank\">JP Morgan<\/a> assigned an &#8220;overweight&#8221; rating and a price target of Rs 1,000, indicating a potential upside of 1.2%. Morgan Stanley praised the demerger, considering it as a sign of confidence in the PV segment&#8217;s potential, and assigned a target price of Rs 1,013.<\/p>\n<p>They also said that there could be synergies between Jaguar Land Rover and the domestic PV business, especially in the electric vehicle (EV) space. Nomura issued a &#8220;buy&#8221; call with a target price of Rs 1,057, representing a 7% upside.<\/p>\n<p>They believe that the demerger will allow both businesses to pursue their individual strategies more effectively, especially the PV segment with its strong growth potential. An anonymous analyst believes that the demerger will attract EV-focused investors and could lead to further positive reactions and increased investment in the coming weeks.<\/p>\n<p>However, <strong>Investec maintained a &#8220;hold&#8221; call on the stock,<\/strong> not expecting a significant impact on valuations. They see the demerger creating a &#8220;pure CV play&#8221; and a &#8220;global PV play.&#8221; InCred issued a &#8220;reduce&#8221; call, anticipating valuations favoring the PV business at 62% post-demerger, with the remaining 38% going to the CV segment. They expect minimal changes in overall business operations.<\/p>\n<p>The demerger will be executed through an NCLT scheme of arrangement. Existing <a href=\"https:\/\/univest.in\/stocks\/tatamotors\/tata-motors-ltd-share-price-today\">Tata Motors Limited (TML)<\/a> shareholders will retain identical shareholdings in both resulting companies.<\/p>\n<p>However, the company cautions that obtaining necessary approvals from various stakeholders and regulatory bodies might take an additional 12-15 months.<\/p>\n<p style=\"text-align: left;\"><strong>Conclusion<\/strong><\/p>\n<p>Overall, most brokerages have a positive view of the demerger decision, seeing potential benefits for both the PV and CV businesses. Some brokerages hold a more neutral or cautious view, calling for further assessment of the long-term impact.<\/p>\n<p><strong>Disclaimer<\/strong><\/p>\n<p>All the information shared is for educational purposes only. Investments in security markets are subject to market risks. Read all the related documents before investing<br \/>\nFor further disclosure visit <a href=\"http:\/\/www.univest.in\">www.univest.in<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tata Motors to Split PV and CV Businesses, Brokerages Bullish On March 5, 2024, Tata Motors made an announcement to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into separate entities. This decision was welcomed by most brokerages, who see great potential for both businesses to create more value and have greater strategic<\/p>\n","protected":false},"author":15,"featured_media":26915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[],"class_list":["post-18993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"metadata":{"_last_editor_used_jetpack":["classic-editor"],"_edit_lock":["1709699343:13"],"_edit_last":["13"],"post_views_count":["379"],"rank_math_internal_links_processed":["1"],"rank_math_seo_score":["77"],"rank_math_focus_keyword":["Tata Motors"],"rank_math_title":["Tata Motors to Split PV and CV Businesses, Brokerage Bullish"],"rank_math_description":["On March 5, 2024, Tata Motors made an announcement to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into separate entities."],"rank_math_facebook_title":["Tata Motors to Split PV and CV Businesses, Brokerages Bullish"],"rank_math_facebook_description":["On March 5, 2024, Tata Motors made an announcement to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into separate entities."],"rank_math_primary_category":["842"],"_thumbnail_id":["26915"],"rank_math_analytic_object_id":["710"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2024\/10\/18181935\/portfolio-4-2.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=18993"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18993\/revisions"}],"predecessor-version":[{"id":19046,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18993\/revisions\/19046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/26915"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=18993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=18993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=18993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}