Tata Group company Tata Motors' shares have turned out to be multibaggers in 2023. The stock is trading near its eight-year high. In the previous session, Tata Motors shares touched an all-time high of Rs 634.60. The auto stock has surged 475% in three years
Tata Motors shares were trading over 1% higher at Rs 625.80 on NSE today. The Jhunjhunwala portfolio stock has jumped more than 5% in the last five sessions. In the last year, the Tata Group stock has rallied over 43%, and analysts believe that there is still some steam left
In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 74.8, signaling its trading in the overbought zone. Tata Motors stock has a one-year beta of 1.2, indicating high volatility during the period. Tata Motors shares are trading higher than the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages
The gains in Tata Motors stock are led by positive sentiment in the market and the firm’s UK arm JLR reporting a 30% rise in wholesale volumes for the first quarter compared to the corresponding quarter a year ago. On Monday, Tata Motors overtook the market capitalisation of Kia Corporation to become the 16th most-valued automaker in the world. With a market valuation of $27.15 billion, it is now positioned just below Hyundai Motor
According to brokerages, the bullish trend in Tata Motors shares is likely to continue. An analyst from Morgan Stanley maintained Tata Motors at 'overweight' with a price target of Rs 711. According to Trendlye data, the stock has a 'strong buy' call from 23 analysts, 'buy' from 4, 'hold' from 2, and 'sell', 'strong sell' calls from 1 analyst each
Domestic brokerage Motilal Oswal Financial Services has maintained its 'buy' call on the stock with a target of Rs 700. It sees a 13% upside in the stock from the current level. Tata Motors should witness a healthy recovery as supply-side issues ease (for JLR) and commodity headwinds stabilise (for the India business), the brokerage noted
According to analysts at Motilal Oswal, Tata Motors will benefit from CV upcycle and stable growth in PVs; company-specific volume/margin drivers, and a sharp improvement in FCF and leverage in both JLR as well as the India business. "The stock trades at 19.3x/16.2x FY24E/FY25E consolidated P/E and 5x/4.2x EV/EBITDA," said the brokerage
International Brokerage CLSA also maintains a 'buy' rating on Tata Motors shares with a target price of Rs 690 apiece. The brokerage sees the path to higher volume, margins, and hence 'FCF remains clear', it said. Analysts expect FCF of £1.5 billion and £1.7 billion in FY24 and FY25 respectively
"Tata Motors stock is moving above all important moving averages. The stock has moved higher with strong volumes indicating strength. Any dip in the stock can be a buying opportunity. On a weekly time frame, the stock has given a breakout of an inverted head and shoulder pattern indicating bullishness. With a medium-term outlook, one can buy Tata Motors at Rs 618.20 with a stop loss of Rs 590 for a target price of Rs 650," said Deven Mehata, Equity Research Analyst, Choice Broking said
Abhijeet from Tips2trades told BT, "Tata Motors stock price has been bullish but it is also overbought on the Daily charts with next resistance at Rs 656. Investors should book profits at current levels and wait for a dip near the daily support of Rs 545 to buy for better returns. Immediate support will be at Rs 592."
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