The onset of quarterly earnings for the March 2024 period is about to kick start for Tata Group companies with TCS which is scheduled to declare its Q4FY24 earnings on April 12. So far, three Tata companies have announced their plan to reward dividends either final or interim. Ahead of the earnings, there is a list of ten Tata biggies who are recommended to buy.
1. Tata Motors: (Market Price On April 9: Rs 1012.95)
After JLR's Q4 and FY24 sales numbers, Motilal Oswal has maintained its NEUTRAL rating with a TP of Rs 970, which is lower compared to the current price. Motilal Oswal said, owing to a strong performance across its key business segments.
But in the long-term Tata Motors is among top picks. Prabhudas Lilladher has set a new all-time high target for Tata Motors at Rs 1,075 while increasing its EV/EBITDA multiple for the India PV business to 13x to align it more closely with Maruti Suzuki.
Other than that brokerages like CLSA have maintained their BUY on Tata Motors for Rs 1,133 target. While the highest targets are set by Sharekhan and KR Choksey to Rs 1,178 and Rs 1,188.
2. Tata Elxsi: (MP: Rs 7927.15)
Prabhudas Lilladher is currently among the only brokerages to recommend BUY on Tata Elxsi for near-term gains.
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said, the RSI is well-placed and is on the rise, with the potential to rise further in the coming days. Accordingly, Parekh suggests buying and accumulating this stock for an upside target of 8600-9000, keeping the stop loss near the 7200 level.
Tata Elxsi will announce its Q4 results on April 23 alongside the recommendation of the final dividend for FY24. Last year, Tata Elxsi paid the highest dividend of Rs 60.60 per share.
3. Tata Communications: (MP: Rs 2047.30)
Tata Communications board meeting is scheduled to be held on Wednesday, April 17, 2024, to inter alia consider, approve and take on record Q4 results, and to recommend dividend, if any, for the financial year ended March 31, 2024.
IIFL Securities said, "At 5x/10x EV/sales for TCOM's digital portfolio, March'25 fair value per share comes to ~Rs3,092/Rs5,292. This suggests a significant upside if TCOM's Digital portfolio business achieves scale and drives re-rating. We raise the Mar'25 TP to Rs2,342. However, demand weakness could weigh on near-term financials and offer a better entry point. Maintain ADD."
4. Indian Hotels: (MP: Rs 604.90)
Motilal Oswal has recommended BUY on Indian Hotels share price for the target of Rs 615 apiece. Also, the Trendlyna data showed that the consensus recommendation from 20 analysts for Indian Hotels Company is BUY. Its EPS is expected to grow by 27.6% in FY24.
5. Tata Technologies: (MP: Rs 1101.90)
On the newly listed company of Tata Group, JM Financial has initiated coverage. JM's note said, "TATATECH's inclusion in that network is a significant positive and should offer the company a marquee referenceable client to win more accounts/cross-sell to existing ones. At 45x FY26E PER, the valuation is now at par with KPIT/ELXSI (47x/44x). With capabilities now spanning the entire spectrum of OEMs' ER&D spend, comparable valuations are justified, in our view. We reiterate BUY with an unchanged TP of INR 1,370."
6. TCS: (MP: Rs 3972.70)
JP Morgan has maintained Neutrality on the company while raising its target price of Rs 4,000 per share with a positive outlook. Also, JM Financial has set BUY for the target of Rs 4,040.
TCS is also among the Tata Group stocks to buy recommended dividends. TCS will be the first to announce its Q4 results on April 12, along with the final dividend payout for FY24. Since 2023, TCS has paid a whopping 14,400% dividend amounting to Rs 144 per share. However, TCS has a long history of paying dividends to its shareholders.
Sharekhan has maintained the highest target on TCS to Rs 4,750 with a BUY rating owing to the company's strong domain expertise, geographical presence, and ability to cross-sell making it well-placed to grab opportunities across cost optimisation, digital transformation, and newer technology services.
7. Titan Company: (MP: Rs 3747.70)
Motilal Oswal has recommended BUY for a target price of Rs 4,300 on Titan Company. Titan reported sales growth of 17% YoY in 4QFY24 ahead of its full-fledged Q4 earnings report.
8. Tata Power: (MP: Rs 416.30)
JM Financial has recommended buying for a target price of Rs 439. As per Trendlyne data, EPS is expected to grow by 8.0% in FY24. Tata Power Company Ltd.'s Revenue was higher than the average estimate 3 times in the past 3 years
9. Tata Consumer Products: (MP: Rs 1136.95)
JM Financial has suggested BUY for a target price of Rs 1,220. However, it is Motilal Oswal that has the highest target of Rs 1,370 with a BUY rating. Also, as per Trendlyne data, the consensus recommendation from 25 analysts for Tata Consumer Products Ltd. is HOLD
10. Trent: (MP: Rs 3931.35)
Currently, Motilal Oswal has set the highest target of Rs 4,200 on Trent. According to the brokerage, Trent reports strong standalone revenue growth of 53% in 3QFY24. While its gross margin improves due to controlled costs and moderating raw material prices. It added, " Trent's growth opportunity and improving store metrics offer upside potential."
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.
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