Tata Group-backed Tata Motors is on a bull run on Thursday, rallying over 2% on BSE alone. The stock is closing its gap not only towards its 52-week high of Rs 1,065.60 apiece but also closer to the Rs 1,100 mark. On the first trading session of May month, Tata Motors met its 1-year moving average target price. The big boost comes from double-digit growth in April sales numbers despite the GST penalty. Also, the share price is in focus ahead of its Q4 numbers and dividend recommendation which is scheduled in the coming days.
Tata Motors Share Price:
Tata Motors' share price is trading at Rs 1029.35 apiece, at the time of writing, up by 2.13% on BSE with a market cap of Rs 3,42,129.07 crore. The stock is near its intraday high of Rs 1029.95 apiece.
That being said, Tata Motors shares have it its 1-year average target price of Rs 1,028 apiece. On Trendlyne, the average 1-year target was at Rs 1028.48 apiece by the consensus recommendation based on 29 analysts. Currently, its consensus recommends a hold. Of the total 12 analysts have suggested a strong buy in Tata Motors shares, while 9 have recommended just BUY, and 4 analysts advise holding the shares. The rest suggest sell and strong sell.
The stock's 52-week high and low is at Rs 1,065.60 and Rs 474.60 apiece. Tata Motors is a multi-bagger and is moving towards the next record-high target prices of brokerages like Prabhudas Lilladher and ICICI Direct who have recommended Accumulate and BUY for the short-term target of Rs 1,075 and Rs 1,085 apiece.
Once Tata Motors hit the Rs 1,100 mark, it has the potential of touching its long-term target prices of Rs 1,188 and Rs 1,178 by Sharekhan and KR Choksey.
YTD, the stock is up by 30%. In a year, the stock has rallied by a whopping 114%.
Tata Motors Sales:
In April 2024, Tata Motors' domestic and international market sales stood at 77,521 vehicles, compared to 69,599 units during April 2023. At the same time, its domestic sales recorded growth of 12% in April. Further, its domestic sales of MH&ICV in April 2024, including trucks and buses, stood at 12,722 units, compared to 8,985 units in April 2023. Total sales for MH&ICV Domestic & International Business in April 2024, including trucks and buses, stood at 13,218 units compared to 9,515 units in April 2023.
In the case of passenger cars including EVs, Tata Motors posted sales of 47,983 units in April 2024, versus 47,107 units in April 2023.
Swarnendu Bhushan, Co-Head of Institutional Research, Prabhudas Lilladher said, "TTMT total Passenger Vehicle sales grew by 1.9% YoY to 47.9k units mainly due to domestic business as export sales remained flat," adding, " EV sales declined by 2.3% YoY to 6.4k units which led its contribution to overall PV sales to decline by 50bps YoY to 13.8%."
Bhushan added, "Its overall Commercial Vehicle sales grew by 31.3% YoY to 29.5k units, led by strong 12.8% YoY/14.6% YoY growth in its core M&HCV/SCV category, similarly, I&LCV and Passenger Carrier category reported ~2x YoY growth."
Tata Motors GST Penalty:
Tata Motors has received a GST tax penalty worth nearly Rs 99 crore from two CGST/SGST departments in Delhi and Uttar Pradesh.
As per the regulatory filing, Tata Motors got a tax penalty of Rs 1.425 crore from the Sales Tax Officer Class II / AVTO Ward 204, Zone 11, Delhi, under section 73 of the CGST/ SGST Act, 2017.
Further, the company received a massive penalty of Rs 97.091 crore from the Additional Commissioner, Central Goods and Service Tax and Central Excise located at Indirect Tax Bhawan, Vibhuti Khand, Gomati Nagar, Lucknow, Uttar Pradesh.
Tata Motors said, "There is no Material impact on Financial and operational activities of the company on account of this order. Company is reviewing the order and will exercise right to file Appeal."
Tata Motors Q4 Earnings:
Tata Motors will be announcing its Q4 and full-year FY24 results on May 10. Alongside Q4, The company has also proposed to recommend dividends, if any on the Ordinary Shares and 'A' Ordinary Shares in the Company for the financial year ended March 31, 2024, for the approval of the shareholders at the forthcoming 79th Annual General Meeting of the Company. This will be another big booster for Tata Motors DVR.
Tata Motors Split 1:2:
Tata Motors board has approved the demerger of the company into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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