One Factor That Will Benefit Tata Motors Share According To Deven Choksey

Tata Motors recently executed a strategic restructuring move by transferring an 80% stake in Jaguar Land Rover Ventures Limited (JLRV) and its wholly owned subsidiary, Artifex Interior Systems Limited (AISL), from Jaguar Land Rover Limited (JLR)—a wholly owned subsidiary of Tata Motors—to Tata AutoComp Systems Limited (TACO), an associate company within the Tata Group.

This transaction, finalized on March 28, 2025, involved a base consideration of GBP 77 million (approximately Rs 828 crore or USD 100 million at current exchange rates), with an additional deferred consideration of up to GBP 6.3 million (approximately Rs 70 crore or USD 8.5 million) contingent on AISL meeting specific performance criteria.

As a result, JLRV and AISL are no longer subsidiaries of Tata Motors, though they remain within the Tata Group ecosystem under TACO, a subsidiary of Tata Sons.

Why Deal Is Important?

According to Market Analyst Deven Choksey, the transactions are consistent with Jaguar Land Rover's (JLR) "Reimagine" strategy, which prioritises electrification and expanding its luxury market leadership.

By transferring these ventures, Tata Motors is not divesting but rather reallocating assets within the Tata Group, fostering greater synergies in its automotive supply chain.

For instance, TACO, being a leader in auto components manufacturing, is well-positioned to leverage the capabilities of JLRV and AISL, particularly in interior systems and related ventures, Choksey said.

From a financial perspective, the impact on Tata Motors appears minimal. JLRV’s contribution to Tata Motors' consolidated revenue last year was GBP 296 million—less than 1% of its total revenue—while its net worth constituted a mere 0.16% of the company's consolidated net worth.

The GBP 77 million cash inflow, with a potential addition of GBP 6.3 million, offers only a modest boost to Tata Motors’ liquidity.

However, this amount could still support strategic priorities like debt reduction or reinvestment in electrification. Moreover, removing JLRV and AISL's net assets, worth GBP 14 million, has an almost negligible impact on Tata Motors' balance sheet.

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Tata Motors Share Price Target

Pre-transaction analyst targets Rs 831 target in March 2025 suggesting a 20-25% upside from current levels(around Rs 670-700). The transfer is unlikely to shift these targets significantly unless it signals a broader restructuring trend.

Tata Motors Share Price

Tata Motors Ltd's share price currently stands at Rs 654.05, with a decline of Rs 17.75 or 2.64% from the previous close of Rs 671.80.

The stock opened at Rs 656.05, reaching an intraday high of Rs 669.00 and a low of Rs 652.80.

Over the past year, the stock has fluctuated significantly, with a 52-week high of Rs 1,179.05 and a 52-week low of Rs 606.20. The company's full market capitalization is Rs 2,40,778.61 crore.

Over the last three months, the share price has decreased by 17.25%, and in the last six months, it has dropped by 29.37%.

Tata Motors has achieved impressive growth over five years, with a return of 901.61%, and a two-year return of 54.17%, demonstrating its longer-term resilience.

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