Shares of Tata Motors Ltd rose for the third straight session on Thursday. The upmove in the stock is led by sales of the Indian automaker in December 2024 apart from the ongoing positive sentiment in the stock market. Tata Motors stock has risen 6.26% from its 52-week low of Rs 718 reached on December 23, 2024. Brokerages are mostly bullish on the outlook of the stock. Nomura India has a price target of Rs 990 for the Tata Motors stock.
Brokerage DAM Capital has a 'buy' call with a target price of Rs 870 per share.
DAM Capital sees Jaguar Land Rover's (JLR) volumes to clock a Compounded Annual Growth Rate (CAGR) of 6.5% over financial year 2025-2027. The brokerage is also projecting slightly lower margins and lower valuation multiples for the CV, PV and JLR business.
In the bear case scenario, DAM Capital has a price target of Rs 675 on the stock, a potential correction of 9% from Thursday's closing levels.
Sharekhan has a price target of Rs 1,099 on the Tata Motors stock.
"We retain our BUY rating on Tata Motors with a revised price target of Rs 1,099, based on expectations of continued improvement in JLR, PV, and CV businesses as well as reduced net automotive debt. The stock trades at a P/E multiple of 12.2x and EV/EBITDA multiple of 5.3x its FY2027E estimates," said Sharekhan.
LKP Securities refers the Tata group stock as a 'value buy'. The domestic commercial vehicle (CV) demand may rise in H2 and said the recent launches are expected to support growth. The brokerage has assigned a fresh price target of Rs 970.
"The stock is trading at 11.1 times FY27E consolidated earnings estimates. It has corrected by approximately 40 per cent from its 52 week highs. Considering our optimistic view on the stock, we now find it to be attractive from these levels. Hence, it is a value buy. A slowdown in key global markets remains a monitorable," LKP said.
In the current session, the Tata Group stock rose 2.33% to Rs 766.70 in the current session. Tata Group shares have delivered negative returns of 2.56% in a year. Tata Motors stock is trading neither in an oversold nor in overbought zone, indicates its RSI of 41.8.
Market cap of the firm rose to Rs 2.81 lakh crore in the current session. On BSE, 10.99 lakh shares changed hands amounting to a turnover of Rs 83.25 crore.
The stock has a one-year beta of 1.1, indicating very high volatility during the period.
The stock is showing weak trend in terms of short term and long term. Tata Motors shares are trading higher than the 5 day, 10 day but lower than the 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The company reported a 1% year-on-year rise in its December 2024 sales numbers at 76,599 units against 76,138 units in the year-ago period. Tata Motors domestic and international sales for Q3FY25 stood at 2,35,599 vehicles compared to 2,34,981 units during Q3FY24. It rose 0.26% on a YoY basis.