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Tata Motors: Most anticipated demerger on the anvil

ICICIdirect Research 03 Oct 2025 DISCLAIMER

Tata Motors is going for a vertical demerger wherein we shall have two listed companies i.e. Tata Motors – CV and Tata Motors – PV instead of present one company i.e. Tata Motors.
In our view, CV business is expected to command a market cap of ~₹ 1.2 lakh crore (11x EV/EBITDA on FY27E) which essentially means ~₹ 300/share as fair price for the CV business.
Residual PV business which also includes JLR will remain in the listed entity and its fair price as per our SoTP (India PV, India E-PV and JLR) is pegged at ~₹ 500/share (MCap: 1.9 lakh cr).
Since the company is going for a vertical split, it will have mirror shareholding in both the companies post demerger.
Tata Motors has fixed Tuesday, October 14, 2025 as the “Record Date” for this monumental transaction.  
Thus, on October 14, we expect listed Tata Motors to adjust for this transaction and it shall trade in the range of ~₹ 450-500/share; reflective off its overall PV business
CV arm is expected to be listed separately, post the de-merger sometime later in the year.

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