Tata Motors Commercial Vehicles Analyzed

Key Points

• Nomura says Tata Motors Commercial Vehicles (TMCV) will likely increase in value.
• They think India’s truck business will get better, with more trucks being sold.
• TMCV already has a big share of the truck market (46%), making it a strong player.
• TMCV is buying another truck company (Iveco) which will help them grow in the long run.
• They predict TMCV will make more money because of lower costs and better efficiency.
• Nomura thinks Ashok Leyland is also a good choice for investors in the truck market.

Nomura, a company that gives advice about stocks, has taken a close look at Tata Motors Commercial Vehicles (TMCV). They believe things are going to get better for TMCV and that investors should buy its stock. This is because the truck business within Tata Motors is starting to do much better.

TMCV makes the big trucks that haul things across India. Recently, they split off from the rest of Tata Motors, and Nomura thinks this is a good thing. They believe the truck market will get bigger, which means more trucks will be sold. This is called an “upcycle” – it means things are going from bad to good.

TMCV already has a huge lead in the market. They sell about half of all the medium and heavy trucks in India. That’s a really big number! Nomura expects this market to grow by about 10% each year for the next few years, meaning more trucks will be needed.

Here’s how Nomura thinks TMCV will make more money: Trucks will cost less to build and operate. TMCV will also be able to sell trucks at higher prices because people are willing to pay more. This means TMCV will make more profit.

TMCV is also buying a truck company from Europe called Iveco. This might seem like a problem because Iveco isn’t doing so well right now. However, Nomura believes this purchase will help TMCV in the future. It will give them new ideas and help them sell more trucks around the world.

To figure out how valuable TMCV is, Nomura used a special method called “sum-of-the-parts.” They looked at both TMCV and Iveco and estimated how much each is worth. They believe TMCV is worth about ₹481 per share.

Nomura also says TMCV will make more money than other truck companies. They predict TMCV will make 12-11% more money than other companies over the next few years. This is good news for investors because it means TMCV’s stock price will likely go up.

Another company called Ashok Leyland is also making a comeback. Nomura thinks Ashok Leyland is a good investment too, because it also sells a lot of trucks and is benefiting from the growing market. They predict Ashok Leyland will grow even faster than TMCV.

Overall, Nomura thinks the truck market in India is getting better. This is good news for TMCV and Ashok Leyland because it means more trucks will be sold. They expect things to continue to improve for the next few years.

“Investing in Tata Motors Commercial Vehicles offers a chance to profit from a growing truck market and strong company performance.”