Tata Motors Passenger Vehicles Ltd (TMPVL) made its stock market debut on Monday, listing at ₹400 per share on the NSE during the pre-open session following the demerger of Tata Motors’ passenger and commercial vehicle businesses. Today marks the record date for the much-anticipated demerger, paving the way for the two independent entities to trade separately.
According to the demerger structure, the Passenger Vehicle unit (TMPVL) includes Tata Motors’ domestic PV business, Jaguar Land Rover (JLR), stakes in Tata Sons, Tata Steel, and Tata Technologies, along with other strategic investments. Meanwhile, the Commercial Vehicles (CV) entity will comprise the domestic CV business, the Iveco JV, and a stake in Tata Capital.
Brokerages have begun independently valuing the two newly separated entities. Nomura estimates the Passenger Vehicle business at ₹367 per share and the Commercial Vehicles arm at ₹365 per share, suggesting an almost even value split post-demerger. The brokerage highlighted that the PV business continues to benefit from post-GST festive demand and a premiumization trend, particularly driven by the Nexon and Punch SUVs.
Goldman Sachs, which values the consolidated Tata Motors business at ₹700 per share, allocates ₹236 to JLR, ₹130 to the domestic PV business, and ₹306 to the CV business. The firm also noted that a special trading session would be held for fair value discovery of the commercial vehicles unit.
Nuvama Alternative and Quantitative Research values the Passenger Vehicle business at ₹410 per share, broken down as ₹176 for the India PV business, ₹188 for JLR, ₹16 for the JLR China JV, and ₹33 for the Tata Technologies stake, after applying a 20% holding company discount. It expects the Commercial Vehicle entity to list within the next 30–45 days, with an estimated value of ₹280 per share.
With TMPVL now independently listed, analysts expect both businesses to unlock long-term value for shareholders, aided by distinct strategic focus areas and financial transparency.
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