The most awaited IPO of the year is almost here. First Tata IPO It’s been two decades, Tata Technologies Will open for bidding on Wednesday. The ₹3,043 crore IPO has investors and analysts in discussion. So, should you subscribe to the IPO, or give it a pass? This is what top analysts are saying.
Domestic brokerage Ventura issued “Subscribe” rating for Tata Technologies IPO. The brokerage said the gradual recovery in the global economy, increase in manufacturing capital expenditure and shift in manufacturing from the US, Europe and China to India have set the Tata Group up for strong financial performance in the coming years.
HDFC Securities said in its note that Tata Technologies Ltd has deep automotive domain expertise and a thorough understanding of customer needs, which helps them adapt to various stages of the product lifecycle, from concept and development to manufacturing, sales and service. Does it. The company has established long-term partnerships with anchor customers including jaguar land rover (JLR) has been providing opportunities to upskill and refine your value proposition in the automotive sector since 2010.
Also see: Tata Technologies IPO: Tata Motors set to earn 6,657% return on investment
Talking about the company’s clients, HDFC Securities reported that as of September 30, 2023, the company collaborates with leading manufacturing enterprises around the world, more than 35 traditional automotive original equipment manufacturers (OEMs) and Tier 1 suppliers. Simultaneously provides service more than 12 new energy vehicles. Companies. Major customers include Tata Motors, JLR, airbus, mclaren, Honda, ford, cooper standard, winfastAnd others.
However, the brokerage also said the company’s dependence on its top five customers and the automotive sector is a matter of concern.
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The company is looking to expand into other areas. In their note, analysts at Ashika Research noted that Tata Tech is actively acquiring projects with leading engineering research and development (ER&D) spenders in the automotive, aerospace, transportation, construction and heavy machinery (TCHM) sectors. Used to be.
The brokerage also highlighted that its recent addition by Airbus is expected to provide a strong opportunity for growth, further strengthening its position and expanding its footprint in the aerospace sector.
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