Tata Motors Share Price: Tata Group-backed automobile giant, Tata Motors share price nosedived by a massive 3.1% on Thursday, January 9, despite majority of brokerages recommending BUY on the stock. There is a potential of at least 66% upside in Tata Motors going ahead, and the latest bearish tone indicate a buy-on-dips opportunity. One of the key attribution to the selling pressure in Tata Motors is due to softer sales data with brokerages trimming their outlook in passenger car business of the company. However, the brokerages remain positive in Tata Motors is due to improvement they predict improvement in CV and JLR business.
Tata Motors Share Price:
At the time of writing, Tata Motors share price stood at Rs 769.65 apiece, down by 1.85% on BSE with market cap of Rs 2,87,182.96 crore. The stock price has dipped by 3.17% overall in the day, after hitting an intraday low of Rs 769.65 apiece. The auto stock did cross its Rs 800 mark in the early deals, by hitting an intraday high of Rs 809.95 apiece however could not maintain the upside trend.
Tata Motors Sales Figures:
As per the overall data, Tata Motors global wholesales in Q3 FY25, including Jaguar Land Rover were at 341,791 united, higher by 1%, as compared to Q3 FY24. However, global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in Q3 FY25 were at 97,535 units, lower by 1%, over Q3 FY24.
On the other hand, global wholesales of Tata Motors passenger vehicles in Q3 FY25 were at 139,829 units, higher by 1% as compared to Q3 FY24. While global wholesales for Jaguar Land Rover were 104,427 vehicles, higher by 3% as compared to Q3 FY24. Jaguar wholesales for the quarter were 5,604 vehicles, while Land Rover wholesales for the quarter were 98,823 vehicles.
Tata Motors Share Recommended To BUY:
Global and domestic brokerages all like Tata Motors share price and has recommended BUY. The highest target price is of Rs 1,278 on Tata Motors which is set by global brokerage Macquarie. From the latest intraday low, there is potential of over 66% upside in Tata Motors ahead.
Another global brokerage Morgan Stanley has recommended Equivalent rating the auto giant, and sets a Rs 920 target price. Morgan believes that JLR's latest wholesales data in Q3FY25, is above estimates. Hence, it predicts 9.6% EBIT margins for JLR in the December 2024 quarter.
Further, yet another global brokerage Nomura has suggested BUY rating on Tata Motors with target price of Rs 990. Nomura believes free cash flow could be around $250 million in December 2024 quarter, owing to higher volumes. Overall, the brokerage believes Tata Motors valuation is attractive.
Meanwhile, Emkay Global said, "For TTMT, a) JLR improvement continues along expected lines, with the company on track for ~£1bn FCF this year, along with a net-cash balance sheet, b) India CV space is also seen recovering (albeit gradually, amid delay in public capex uptick), further accompanied by better profitability, and c) India PV outlook is soft amid growth concerns and rising EV competition. We maintain BUY on TAMO, with revised SoTP-based TP of Rs950, after roll-over to Dec-26E."
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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