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NEW DELHI: Maybank Kim Eng Securities, which is a subsidiary of Malaysian Maybank, sees the fair value of Tata Motors shares at half its price today as it believes concerns over Jaguar Land Rover still persist.
In a post-earnings note released on Thursday, Jigar Shah and Vikram Ramalingam, analysts at the brokerage, said stock is overvalued considering multiple headwinds.
“The concern on its high debt levels remains and the need to incur elevated capex due to a shift to electric vehicles in the EU by 2030 will pressure its cash flows. Tata Motor’s EV/Ebitda of 6x FY22E is at a premium to European peers and versus its long term EV/Ebitda of 4x is unjustified,” the duo said.