Tata Motors shares rose 144% from 52-week low, overbought on charts; what’s next?

Shares of Tata Motors Ltd hit a record high today, nearing the key Rs 1,000 mark today. Tata Motors shares climbed 1.40% to a fresh high of Rs 976.30 in early deals on Wednesday. The multibagger scrip has climbed 130% in a year and risen 23% this year. Tata Motors stock hit a 52-week low of Rs 400.40 on March 28, 2023. With today’s rally, the Tata Group has climbed 144% from its 52-week low.

On BSE, around 4.64 lakh shares changed hands amounting to a turnover of Rs 45.06 crore today. Market cap of the firm rose to Rs 3.22 lakh crore.

ICICI Direct has a price target of Rs 1,000 for the Tata Motors stock.

"With stupendous run up in Tata Motors stock price (>2x in last 1 year) and having captured much of the up move, we now assign HOLD rating to the stock, thereby valuing it at Rs 1,000 on SOTP basis (10x, 2.2x FY26E EV/EBITDA to India, JLR; Rs 230 value to Indian E-PV & stake in Tata Tech," said the brokerage.

Goldman Sachs has reiterated a 'buy' call on the Tata Motors stock with a target of Rs 1,020.

Motilal Oswal has a target of Rs 1,000 for the Tata Group stock.

The brokerage believes that the next leg of growth will be driven by JLR. Tata Motors should witness a healthy recovery as supply-side issues ebb for JLR and commodity headwinds stabilise for the India business.

"While the India CV and PV businesses would see some moderation in growth in FY25E, the focus shifts to margin expansion-led earnings growth, which is likely to sustain," said Motilal Oswal.

Tata Motors stock has a one-year beta of 0.4, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 74.8, signaling it's trading in the overbought zone. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Prabhudas Lilladher has reiterated a target price of Rs 1,010 on the stock. Tata Motors had an advantage of volume ramp-up, good order book and a rich mix of higher ASP models. Lower CV discounts also helped margins in the third quarter, it said.

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making investment decisions.)

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