Thread by @CaVivekkhatri

🧵 Tata Motors Just Split into 2 Companies

But what does that actually mean for YOU?

In this thread, you’ll learn:
- What just happened
- What shares you now hold
- What to expect in the next 30–90 days
- What smart investors are doing now

Let’s break it down👇

1️⃣The Tata Bombshell You Might Have Missed

On October 14, 2025, Tata Motors changed forever.

Without buying or selling a single share…
You became the shareholder of two different companies.

No one told you clearly?
Let me fix that.

2️⃣What Actually Happened

This is not a bonus. Not a split. Not a merger.

It’s called a Demerger.

Tata Motors separated itself into:
- A Passenger Vehicle (PV) company
- A Commercial Vehicle (CV) company

Each with its own stock.
Each with a different future.

3️⃣What Shares You Now Own

If you held 100 Tata Motors shares on Oct 14, here’s what happened:
✔️ You still own 100 of the original shares (now PV-focused)
✔️ You now ALSO own 100 shares of the new CV company

📩 Auto-credited to your demat. No action required.

4️⃣But What’s Inside Each Business?

Let’s simplify:

TMPV = Tata Motors Passenger Vehicles
- JLR (Jaguar Land Rover)
- EVs: Nexon EV, Harrier EV
- CNG cars, SUVs
- Stakes in Tata Sons, Tata Tech, etc.

TMLCV = Tata Motors Commercial Vehicles
- Trucks, buses, logistics
- Iveco (EU acquisition, ₹34,000 Cr deal)
- Stake in Tata Capital

5️⃣What would you rather hold long-term?

Which of the Tata twins do you believe has bigger upside?

6️⃣Miss This, Miss the Money

The critical rule was this:
✅ If you held Tata Motors by Oct 14, 2025
✅ You’re eligible for both shares
❌ If you bought after Oct 14
❌ You get only one

Timing = Everything.
This is where most people mess up.

7️⃣Timeline of Events (Super Simple)

📌 March 2024 → Demerger Plan Announced
✅ Aug 2024 → Board Approves
🔓 Oct 1, 2025 → Demerger Becomes Effective
⛔ Oct 8 → F&O/MTF restrictions begin
🟢 Oct 14 → Record Date (eligibility locked)
🔜 Nov → CV company (TMLCV) gets listed

This isn’t over yet.

8️⃣You’re Now Holding Two Very Different Doors

TMPV (PV business) = Higher growth
- EVs booming
- JLR bouncing back post-cyberattack
- Global upside

TMLCV (CV business) = Bharat’s backbone
- 37.1% market share
- Govt infra push
- Slower growth, steady cash flow

9️⃣Market Reaction: Not What You Think

Tata Motors stock fell 2% on Oct 13
And nearly 7% over the last 7 sessions

Why?
- Uncertainty around listing
- F&O freeze
- JLR cyberattack
- Confusion among retail investors

Volatility ≠ weakness. It’s price discovery.

🔟The Biggest Mistake Retail Investors Make

Most people sell before understanding the full picture.

This is called the “Post-Demerger Panic”.

But smart investors?

They wait for:
✔️ TMLCV to list
✔️ Prices to stabilize
✔️ Each stock to find its fair value

That’s when decisions are made.

1️⃣1️⃣How did you react?

What did YOU do after hearing about the Tata demerger?

1️⃣2️⃣Let’s Talk Strategy

TMPV (PV/EV/JLR):
- 8–10% growth in H2 FY26
- EBITDA margins to improve
- Festive demand + GST cut + Harrier EV bookings

TMLCV (CV/Iveco):
- Targeting 5% revenue CAGR
- EBIT margin goal: 7.5% by 2028
- But Iveco growth = slow initially

One = fast lane
Other = slow, steady tractor

1️⃣3️⃣This Move Wasn’t Just Corporate Restructuring

It was a chess move.

Why?
➡️ Tata wants sharper focus
➡️ Investors get to pick growth vs value
➡️ Easier fundraising, segment-level investments
➡️ No cross-subsidizing underperformers

2 clear lanes.
No more tug of war.

1️⃣4️⃣Short-Term vs Long-Term

Short-Term:
- Volatility till Nov listing
- Technical correction
- Sentiment swings

Long-Term:
- Value unlocking
- Transparent valuation
- Tailored strategies for each segment

Investing isn’t about now.
It’s about next.

1️⃣5️⃣What's Your Time Horizon?

When do you plan to reassess your Tata investment?

1️⃣6️⃣What Smart Investors Are Doing Now

✔️ Watching TMLCV listing in Nov
✔️ Tracking volume, margin guidance
✔️ Rebalancing based on conviction
✔️ Avoiding panic selling

This isn’t about reacting.
It’s about positioning.

1️⃣7️⃣ Disclaimer

📜 Disclaimer & Disclosure
This thread is shared by Stockizen Research, a SEBI Registered Research Analyst (INH000017675 | BSE/RA/25072024/6309).
Educational only. Not investment advice.
“Investment in securities market is subject to market risks.”
We hold no financial interest or 1% ownership in companies mentioned.
🔗 stockizenresearch.com/disclaimer

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