October 4, 2022

Tata Motors has just lately launched a brand new sub-compact SUV, Punch, beginning at Rs5.49 lakh (ex-showroom) value. Tata Punch has been rated among the many most secure car in India with 5- star and 4-star rankings, respectively, for grownup and baby occupant safety on NCAP requirements.

Tata’s new sub-compact SUV Punch holds robust quantity potential because it brings SUV physique model to a cheaper price vary, which has to this point been largely addressed by hatchbacks and compact sedans, stated Jefferies in a observe.

“Punch seems nicely styled for its value and has obtained excessive security rankings. We proceed to love Tata, given its enhancing India franchise, early management in India EVs, and JLR focus returning to higher-margin Land Rover model,” it stated. 

Jefferies has retained its ‘Purchase’ score on the Tata Motors inventory and has revised its goal value upwards of 625 per share (earlier 565). Its has an upside state of affairs goal value of 800 whereas its draw back state of affairs value goal is 415 apiece.

Tata’s PV franchise took successful within the final decade, as market share fell from 15% in FY10 to five% in FY20. Its new SUV focussed portfolio, improved product styling, and model positioning round security have fueled a powerful turnaround, with market share recovering to 11% in 1HFY22, and Jefferies sees additional upside potential from Punch. 

Indian passenger car (PV) market has been quickly shifting in direction of SUVs; share of SUVs in complete business volumes has risen from 14% in FY12 to 21% in FY16 and additional to 47% in 1HFY22. “Availability of lower-priced well-styled SUVs akin to Tata’s Punch ought to speed up the shift from premium hatchback and small sedan segments, which type about 35% of business volumes,” the observe added.

The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint.

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