Tata Motors shares continued their strong upward run for the third straight session in Friday's trade. The stock rose 1.74 per cent to hit a one-yar high of Rs 1,110. It was last seen trading 1.23 per cent higher at Rs 1,104.50. At this price, the scrip has gained 39.72 per cent on a year-to-date (YTD) basis.
Nomura has revised its rating for Tata Motors to 'Buy' from the earlier recommendation of 'Neutral'. The international brokerage has raised its target price to Rs 1,294. Nomura said Jaguar Land Rover's (JLR's) execution can lead to significant upsides for the Tata Motors stock. This, coupled with the proposed demerger, will unlock value for the commercial vehicle business, it added.
Technical analysts also remained positive on the counter for the short-term. "The stock has seen a very good upmove. One can consider buying it at current levels for an upside target of Rs 1,150. Keep a strict stop loss placed at Rs 1,040," Kiran Jani, Head of Technical Research at Jainam Broking, told Business Today TV.
"Tata Motors has soared into the uncharted territory, suggesting a robust undertone. On the lower end, strong support is expected near the Rs 1,050-1,040 zone, followed by a strong psychological support at Rs 1,000. The immediate potent resilience could be seen around Rs 1,150 subzone with a formation breakout in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The scrip has potential to hit an upside target of Rs 1,180 in the near term. Keep stop loss placed at Rs 1,070 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
The stock saw high trading volume on BSE today as around 8.67 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 5.13 lakh shares. Turnover on the counter came at Rs 94.83 crore, commanding a market capitalisation (m-cap) of Rs 3,67,075.55 crore.
It was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 72.96. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 45.89 against a price-to-book (P/B) value of 12.03. Earnings per share (EPS) stood at 23.77 with a return on equity of 26.22.
Tata Motors is scheduled to announce its June 2024 quarter (Q1 FY25) results on August 1. At present, promoters held a 46.36 per cent stake in the automaker.