New Delhi: Tata Motors Limited shareholders are advised to keep their holdings intact and can buy the stock on dips, stock market expert Arun Mantri said a day after the automobile giant’s board approved the Scheme of Demerger of Tata Motors Ltd (TML) into two separate listed companies.
Speaking to News9live, the expert said Tata Motors share price is not expected to gain much after the demerger decision announcement. He, however, said that existing shareholders should continue to keep the counter in their portfolio and wait for the demerger to happen next year.
The board gave its approval to the Composite Scheme of Arrangement involving the demerger of its CV business undertaking and the merger of Tata Motors Passenger Vehicles (TMPV) with the existing listed company thereby resulting in two separate listed companies for the CV and PV businesses.
“The share entitlement ratio will be 1:1, i.e., the shareholders of Tata Motors Ltd will have an identical shareholding in both the listed entities. The scheme will further empower the respective businesses to pursue their differentiated strategies with greater agility and will enhance value for the shareholders,” the automobile major announced.
Tata Motors share price, Q1 Results
Tata Motors share price dropped 4 per cent on August 2, 2024 after the company declared 11 per cent year-on-year dip in total sales in July 2024. The auto stock declined to trade at 1101.70 apiece on the National Stock Exchange (NSE) at 12:51 pm today.
In its Q1 2024-25 Results, the auto major declared its consolidated net profit increased 74 per cent to Rs 5,566 crore in the June 2024 quarter as compared Rs 3,203 crore in the same quarter of 2023-24.
In the first quarter of this financial year, the Tata Motors’ total income rose to Rs 1,09,623 crore; it was Rs 1,03,597 crore in the June quarter in FY24. Tata Motors’ total income increased to Rs 18,851 crore as against Rs 16,132 crore in the corresponding period of FY24.
Tata Motors said its board has approved the Scheme of Demerger of Tata Motors into two separate listed companies. Tata Motors Q1 2024-25 Results: The company reported a jump in profit to 74 per cent to Rs 5,566 cr on JLR boost. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
