Tata Auto Stock Almost Hit New 52-Week But Shied By Re 1; Unveils Ultra Smart Trucks; BUY For Rs 1,060 TP

Tata Group's largest automobile player, Tata Motors was popping up uncontrollably on Friday's trading session as much as the stock price almost touched a new 52-week high, but refrained by at least Re 1. At full throttle, Tata Motors was among the top gainers on BSE and NSE, rising by over 3% in a single day. There is more upside expected in Tata Motors as brokerages like KR Choksey and ICICI Direct set target prices of Rs 1,000 to Rs 1,060.

Up to 13% upside could be still fetched in Tata Motors' share price in the near term.

After market hours, Tata Motors' share price closed at Rs 938.75 apiece, up by 2.02% on BSE with a market cap of Rs 3,11,970.25 crore.

In the trading hours, Tat Motors hit an intraday high of Rs 948.50 apiece, which was just Rs 1.1 away from its current 52-week high of Rs 949.60 apiece.

Tata Motors is a multi-bagger with upside of 134.5% from its 52-week low of Rs 400.40 apiece.

Tata Motors is currently racing to become India's top automobile company in terms of market share, a title that is currently being held by Maruti Suzuki with m-cap of Rs 3,57,401.84 crore as of February 16, 2024.

This Tata Group-backed company has been continuously expanding its footprint in the automobile sector with new launches. In the latest development, the company along with its authorised distributor, Tata Africa Holdings Limited, announced the commercial launch of its successful range of multipurpose heavy-duty trucks - Ultra T.9 and Ultra T.14, in South Africa.

Designed to fulfil the rising need for safer, smarter and greener cargo mobility, the Ultra is perfectly suited for a wide variety of conventional and specialist logistics applications including bakery, FMCG, white goods, agriculture and construction. The Ultra range is engineered to deliver high productivity with best-in-class power & torque and fuel efficiency with lower total cost of ownership (TCO), as per the statement.

Powered by Tata Motors' globally proven turbocharged diesel engines with best-in-class power and torque output, the Ultra T.9 (powered with a 3.3L engine) and Ultra T.14 (powered with a 5.0L engine) provide a reliable solution to comfortably carry heavy loads over long distances and rough terrains. The trucks come equipped with parabolic suspension for rugged and uninterrupted operations. The trucks are offered with Tata Motors' flagship connected vehicle system, the Fleet Edge, for efficient fleet management that helps further increase fleet productivity.

Brokerages recommend buying at Tata Motors' share price.

KR Choksey at the latest has kept a target price of Rs 1,060 on Tata Motors, signalling a potential 12.9% upside ahead.

Meanwhile, ICICI Direct has recommended holding Tata Motors' share price for a target price of Rs 1,000 apiece.

With levers in place, ICICI Direct said, "We expect EBITDA margins to further improve to 16.5% by FY26E. Amidst record profitability, for FY24E, JLR is progressing well onto its FCF generation guidance at >£2 billion amid capex outlay of ~£3 billion thereby aiming to reduce its net debt from ~£3 billion to

Further, ICICI Direct's note added, "Company's focus in the interim is to further improve upon the profitability in this space amidst its proven capabilities across powertrains (ICE, CNG, Electric, Hydrogen, etc.) and guidance for double-digit EBITDA margins. On the EV side, it plans to build upon its leadership position in the E-PV space with a target to sell ~1 lakh E-PVs in FY25 and is also a prominent player winning orders in CESL E-bus tenders

Part of the $128 billion Tata group, Tata Motors, a $42 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. With 'Connecting Aspirations' at the core of its brand promise, Tata Motors is India's market leader in commercial vehicles and ranks among the top three in the passenger vehicles market.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor 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.