Brokerage war on Tata Motors: Some are seeing the sky of ₹ 470, while some are afraid of the underworld of ₹ 312.

Currently, an interesting tussle is being seen between Dalal Street and global brokerage houses regarding the shares of Indian auto sector giant Tata Motors. The opinion of the veterans is completely divided regarding the future of the company’s Passenger Vehicle (PV) i.e. domestic car business. While some market experts are very excited about its electric vehicle (EV) portfolio and new model launches, some big analysts believe that increasing competition in the domestic market and slowdown in demand for passenger vehicles can put brakes on Tata Motors’ momentum. For this reason, a lot of confusion has arisen in the market regarding the target price of this share. Trust in Morgan Stanley: Advice to place bets with a strong target of ₹ 470. Morgan Stanley is the biggest name among the brokerage houses standing in favor of Tata Motors. Morgan Stanley analysts seem extremely bullish on the company’s passenger vehicles and especially its EV segment. He believes that Tata Motors will be successful in maintaining its strong share in the Indian car market. The company’s upcoming new vehicle pipeline and its strong hold in the premium SUV segment will improve its margins in the future. On the basis of this strong outlook, he has given a very attractive and big target price of ₹ 470 for this share, which is boosting the morale of the existing investors. UBS warning: Why gave ‘Sell’ rating for big cut of ₹ 312 On the contrary, global financial firm UBS has issued a very cautious and scary report regarding the passenger vehicle business of Tata Motors. UBS argues that the Indian car market is now moving towards complete saturation, where heavy discounting of vehicles is being seen every month. Apart from this, due to tough competition from other competing companies (like Mahindra and Hyundai), pressure on the market share of Tata Motors may increase. UBS has expressed apprehension that the company’s profit margin may decline in the coming quarters, due to which it has set a very low target price of ₹ 312 while maintaining its ‘Sell’ rating on the stock. Retail investors in confusion: What should be your strategy next? With two completely opposite targets of ₹ 470 and ₹ 312 on the same share, common retail investors are completely confused whether to hold the shares, sell them or make new purchases. Independent market experts say that the long-term future of Tata Motors will largely depend on how successfully the company completes the demerger (splitting) of its passenger vehicle and JLR (Jaguar Land Rover) businesses. Long-term investors are being advised that instead of running after the target of any one brokerage, they should keep a close eye on the company’s quarterly results, monthly vehicle sales figures and debt reduction plans and adopt a strategy of gradual accumulation in every major fall of the market.