Tata Motors stock has been accorded a ‘buy’ rating by domestic brokerage Motilal Oswal for a target price of Rs 510, signaling potential gains to the tune of over 29%.
The passenger cars and utility vehicles major in a regulatory filing informed about retail sales at JLR for the Q2FY23 period at 88,121, up 12% QoQ, while wholesale sales were at 75,307 units (excluding China JV) up 4% QoQ.
The brokerage attributed a drag in wholesale sales to the ongoing chip crisis.
“Substantially lower-than-estimated wholesales would result in lower 2QFY23 estimates. For JLR, revised revenue/EBITDA/PAT estimates stand at GBP4.9 billion/ GBP574 million/-GBP4 million in 2QFY23, respectively. Revised 2QFY23 estimates for Tata Motors’ consolidated EBITDA/PAT are Rs 78.9 billion-Rs 6.2 billion, respectively.
FY23 estimates will see a major cut i.e. of over 80% even if just adjusted for the miss in 2Q volumes,” said the brokerage.
“We see a very low probability of JLR meeting its FY23 guidance of 5% and GBP1b FCFF," added the report.
The growth in retail sales was however given the uptick in China, North America and RoW markets.
Order book at the company has expanded by around 5000 units to 2,05,000 as of the September ended quarter. JLR expects sales volume to improve going forward as chip shortages ease, said the report.
According to the brokerage, all three businesses of the company are in recovery mode. “While the India CV business will see a cyclical recovery, the India PV business is in a structural recovery mode. JLR is also witnessing a cyclical recovery, supported by a favorable product mix. However, supply-side issues will defer the recovery process."
While there will be no near-term catalysts from the JLR business, the India business (~50% of SoTP) will see a continued recovery. The stock trades at 16.3x FY24E consolidated EPS and 2.8x P/B,” added the report.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
FAQs
According to analyst recommendations, Tata Motors Share has a "Buy" rating for the long term.
Why Tata Motors is successful in India? ›
This milestone underscores Tata Motors' relentless pursuit of excellence and its enduring bond with its customers. Our production, design, and marketing teams have tirelessly worked together, resulting in successful launches: Nexon and Harrier Safari. This achievement underscores our commitment to innovation.
Is Tata Motors overvalued or undervalued? ›
Relative Value
Compared to the current market price of 985.85 INR, Tata Motors Ltd is Undervalued by 44%.
Why is Tata Motors a good investment? ›
Shares of Tata Motors Ltd are on a roll and have delivered over 110 per cent return in the last 12 months. That said, the multibagger stock has also rallied over 470 per cent return in the last 5 years. Tata Motors' share price doubled in 2023, making it the only stock in the Nifty 50 index to achieve this feat.
Does Tata Motors have a future? ›
Financial Performance and Future Outlook
Tata Motors' financials have shown resilience and recovery, with sales peaking at 345,967 by March 2023 and operating profit reaching 31,816. The company has turned a corner with a positive net profit of 2,690 and an EPS of 7.27 in March 2023.
Which stock will boom in 2024? ›
Top Long Term Stocks to Buy in 2024 Based on 5Y Avg Net Profit Margin
| Stock Name | Sub-Sector | Share Price |
|---|
| Kotak Mahindra Bank Ltd | Private Banks | ₹1,690.10 |
| Tata Consultancy Services Ltd | IT Services & Consulting | ₹3,736.10 |
| Eicher Motors Ltd | Trucks & Buses | ₹4,742.95 |
| Coal India Ltd | Mining - Coal | ₹483.95 |
6 more rowsMay 30, 2024
According to JM Financial, the net-cash position in Tata Motors' domestic business drives comfort. It maintained a 'Buy' rating on Tata Motors stock with an unchanged Mar 2025 target price of ₹1,200 per share.
What will be Tata Motors' share price in 2030? ›
Tata Motors Share Price Target 2030
| Tata Motors Share Price Target 2030 | Price |
|---|
| April 2030 | ₹1701.60 |
| May 2030 | ₹1704.65 |
| June 2030 | ₹1707.80 |
| July 2030 | ₹1711.00 |
8 more rows1 day ago
Tata Motors Share Price NSE for the year 2030 is between Rs 1,684 and Rs 714. What is the Tata Motors Share Price target in 2025? Tata Motors Share Price NSE for the year 2030 is between Rs 1926 and Rs 1,451.
Is it safe to invest in Tata Motors? ›
Tata motors is a very good stock for long term investment but tata motors is now at top. If on near term correction come in tata motors, such correction will stay best for Tata motors.
Post incorporating Q4FY24 performance in our estimate, We maintain our Buy on Tata Motors Ltd (TML) with a revised PT of Rs 1235 on expecting continued improvement in JLR, PV and CV businesses and reduced net automotive debt.
Can Tata Motors be a multibagger? ›
Shares of multibagger Tata Motors have risen 117% from their 52-week low in a year. The auto stock, which fell to a 52-week low of Rs 474.60 on May 2, 2023 rose to a high of Rs 1029.95 in Thursday's trade on BSE, more than doubling in a year. The benchmark Sensex has gained 22% during the period.
Is Tata investment a good buy? ›
Is Tata Investment Corporation Ltd undervalued or overvalued? The key valuation ratios of Tata Investment Corporation Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
What is the target of Tata Motors' share in 2025? ›
According to JM Financial, the net-cash position in Tata Motors' domestic business drives comfort. It maintained a 'Buy' rating on Tata Motors stock with an unchanged Mar 2025 target price of ₹1,200 per share.
Which Tata stock is best to buy? ›
Top Tata Shares List Based on Return on Equity (ROE)
| Company Name | Sub-Sector | Return on Equity |
|---|
| Tata Technologies Ltd | IT Services & Consulting | 21.87 |
| Indian Hotels Company Ltd | Hotels, Resorts & Cruise Lines | 13.41 |
| Tata Power Company Ltd | Power Transmission & Distribution | 11.07 |
| Tata Steel Ltd | Iron & Steel | 7.88 |
6 more rowsFor the year ending March 2024 Tata Motors has declared an equity dividend of 300.00% amounting to Rs 6 per share. At the current share price of Rs 985.85 this results in a dividend yield of 0.61%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
