Shares of Tata Motors Ltd have traded above the Rs 600 mark for the last four months. The Tata Group stock closed at Rs 600.8 on July 6 this year. Since then, the large cap stock has ended above the Rs 600 mark till date. However, the stock is still to touch the Rs 700 level. Most brokerages are hopeful of the auto stock, crossing Rs 700 mark after Q2 earnings.
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Tata Motors stock hit an all-time high of Rs 677.90 on October 16, 2023. The Q2 earnings announced on November 2, largely met analyst estimates. The stock has surged 1.41% or Rs 9 since Q2 earnings.
In the current session, Tata Motors shares were trading flat at Rs 645.95 against the previous close of Rs 645.15 on BSE. Tata Motors stock opened higher at Rs 649.45 on Wednesday. During the session, the stock also hit an intraday low of Rs 645.25 on BSE.
Market cap of the firm stood at Rs 2.14 lakh crore. Total 3 lakh shares changed hands amounting to a turnover of Rs 19.41 crore on BSE. Tata Motors stock fell to a 52-week low of Rs 375.50 on December 26, 2022.
Tata Motors shares have surged 48.52% in a year and gained 63.60% in 2023. They have climbed 365% in three years.
Tata Motors stock has a one-year beta of 1, signaling average volatility during the period.
In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 53.7, signaling it’s trading neither in the overbought nor in the oversold zone. Tata Motors shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
CLSA has a target of Rs 803 on the stock. Morgan Stanley sees the stock worth Rs 711.
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Brokerage Prabhudas Lilladher has raised its target price upwards to Rs 785 from Rs 760, post Q2 earnings.
“We maintain our positive stance on Tata Motors given (1) JLR’s volume ramp-up resulting in strong revenue, profitability and FCF, 2) Domestic CV benefitting from underlying economic strength, operating leverage, benign input costs and lower discounts and (3) focus on market share in PV segment (13.4% in 1HFY24 vs 8% in FY21) led by model launches and rising EV penetration. Retain ‘BUY’ with SoTP based TP of Rs 785 (earlier Rs 760),” said the brokerage.
YES Securities has assigned a target price of Rs 773 to the Tata Group stock. It has maintained its Buy stance with target price of the Tata Group stock, revised upwards.
“We like Tata Motors given its improving India franchise, early leadership in EVs in India, and JLR’s improved profitability. Standalone business is in mid-upcycle led by cyclical recovery both in PV and CV whereas favorable product cycle to help drive JLR outperformance. We raised FY24/25 consol EPS by 3-4% to factor in for better margins at JLR. We estimate revenue/EBITDA CAGR of 8%/17% in FY23-26E and maintain BUY with SoTP based target price of Rs 773 (v/s Rs 768 earlier),” said the brokerage.
Tata Motors Ltd reported a net profit of Rs 3,764 crore in the last quarter against a loss of Rs 944.61 crore in the September 2022 quarter. Revenue climbed 32% to Rs 1.04 lakh crore in Q2 against Rs 78,846 crore in the corresponding period of the preceding fiscal. Operating margin in percentage terms rose to 13.19% in the last quarter against 7.67% in the September 2022 quarter.
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EBITDA surged 86.4% to Rs 14,400 crore.
Earnings per share rose to Rs 9.81 in the last quarter against (minus) Rs 2.47 in the September 2022 quarter. Debt to equity ratio fell to 2.23 in Q2 of this fiscal against 5.21 in the September 2022 quarter.
