1:1 Split In 2 Weeks: Tata Motors Fixed Demerger Record Date; Buy This Tata Auto Stock? Emkay Sets Rs 750 TP

Tata Motors, the auto giant of Tata Group, recorded one of its best single-day gains on October 1st, as its demerger became effective. Tata Motors is set to split into two listed entities, namely TML Commercial Vehicles and Tata Motors Passenger Vehicles. Adding more good news for investors, Tata Motors has also fixed the record date for the 1:1 demerger.

The last date to be eligible for a share swap ratio of 1:1 as part of the demerger plan is scheduled on October 14. Following these, the two entities will be listed on BSE and NSE.

Although, analysts have mixed opinion on Tata Motors stock price outlook. Majority of them have recommended BUY. The latest target price is of Rs 750 on Tata Motors set by Emkay Global.

Tata Motors Share Price:

During the trading session of October 1, Tata Motors stock price recorded nearly 6% upside and touched an intraday high of Rs 720 apiece. Tata Motors emerged among the top bullish stocks of Sensex and Nifty. On October 1st, the demerger deal came into effect, which is not the record date, allotment date or the listing date of the two entities.

Tata Motors share price has a 52-week high and low of Rs 984.40 apiece and Rs 542.55 apiece on BSE.

The current market cap of the company is Rs 2,64,442.55 crore.

Tata Motors Demerger Record Date:

Firstly, the Tata Group auto company fixed Tuesday, October 14, 2025 as the "Record Date" for the purpose of ascertaining the shareholders of the Company who shall be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by such shareholder in the Company on the "Record Date".

The demerger ratio is 1:1. And only those investors will be eligible who are holding Tata Motors shares as of October 14.

Apart from this, Tata Motors also set Friday, October 10, 2025 as the "Record Date" for the purpose of determining the eligible Debenture Holders of the identified Non-Convertible Debentures ("NCD") to be transferred from the Company to TMLCV as per the Scheme.

Tata Motors is also merging its NCDs worth Rs 2,300 crore with TML Commercial.

After this, the said equity shares to be allotted by TMLCV are proposed to be listed with BSE Limited and the National Stock Exchange of India Limited, subject to necessary regulatory approvals.

Tata Motors Auto Sales September 2025:

In September 2025, Tata Motors recorded domestic commercial vehicles sales of 33,148 units, up by 16% YoY. In Q2FY26, the total commercial vehicles sales stood at 87,061 units, up by 9%. Including sales of overseas market, the total commercial vehicle sales grew by 19% YoY in September 2025 to 35,862 units, and overall Q2 sales stood at 94,681 units higher by 12% YoY.

On the commercial vehicles segment, Girish Wagh, Executive Director of Tata Motors said, "Looking ahead, with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold, we anticipate a strong second half for FY26. Construction, infrastructure, and mining activities will gain momentum, further fueling demand for trucks and tippers. With a robust pipeline of upcoming launches, and a richer, more customer-aligned product portfolio, we are well-positioned to accelerate this momentum and drive meaningful, broad-based growth across all commercial vehicles segments."

Meanwhile, the company's passenger cars sales stood at 60,907 units in September 2025, up by 47% YoY. The overall Q2 sales came in at 144,397 vehicles, registering growth of 10% YoY.

"Going forward, with a strong booking pipeline, agile supply readiness, and rising demand driven by festive cheer
and accessible pricing, we are well-positioned to carry this growth momentum in H2 FY26," said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles on the PV sales.

BUY/SELL Tata Motors Share Price?

In its note, analysts at Emkay Global said, ''The Demerger expected to materialize mid-Oct (subject to ROC approvals); PV business to be retained in existing entity; CV business to be listed separately (likely early-Nov).''

The analysts highlighted that Tata Motors management upgraded the FY25-30 CV industry CAGR outlook to 6-8% (5-7% earlier) on recent GST cuts, with the immediate benefit of a 1-2% opex cut for fleet operators to directly aid the bottom line. Meanwhile, for JLR, US market remains resilient, China is holding up, and UK, EU are stable. The brokerage has recommended BUY for a target price of Rs 750.

On the other hand, analysts at JM Financial said, "On the CV side, the management expects GST rate rationalisation to benefit smaller CV segments like SCVs and ILCVs, where more buyers don't claim ITC. It projects double-digit CV growth in 2HFY26, aided by festive demand and GST rationalisation. On the PV front, festive season bookings have surged 25-30% YoY, driven by GST cuts, leading to strong demand. TTMT has seven new launches planned in the next 12 months, including ICE and EV models, with hybrids under consideration based on market demand. We change our rating from 'HOLD', as per our previous rating system, to 'REDUCE' in the new rating system with a Mar'27 SOTP-based TP of INR 689."

The consensus recommendation from 28 analysts for Tata Motors Ltd. is HOLD, as per Trendlyne data. However, of the total, 7 analysts have suggested STRONG BUY and 5 analysts have recommended BUY.

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