3 High-Quality Large Cap Tata Stocks Get "Buy" Call By Top Broking Firms For High Returns

Two leading broking firms have picked three high-quality stocks of Tata Group with a "Buy" for high returns. These large-cap Tata stocks are Tata Power Company Ltd, Tata Steel Ltd, and Titan Company Ltd. Here are the Key highlights of the stocks:

Tata Power Company Ltd

ICICI Securities has estimated a target price of Rs 262/share for the stock of Tata Power with a "Buy", which indicated an upside of 27% from its current level. Its current market price is Rs 207.15/share. The stock has fallen 11.79% in 1 year. It gained 257.16% in 3 years and 143.56% in 5 years. Its 52 week low is Rs 190/share and 52 week high is Rs 298.05/share, respectively. It operates in the power sector having a market capitalisation of Rs 66.191.46 crore.

According to the brokerage, Tata Power Company's (TPWR) run of strong quarterly results continued in Q3FY23 sustained by higher profits from coal and Mundra businesses and robust performance of distribution businesses. For Q3FY23, on consolidated basis, TPWR's reported revenues were up 31% YoY, at Rs 143.6bn, mainly due to higher power sales across discoms and higher revenues from coal and Mundra operations. Reported PAT was up 91% YoY at Rs10.5bn (TPWR's share of profit was Rs9.5bn, up 122% YoY). Main delta in profits, both QoQ and YoY, came from 1) 30% YoY increase in profits from coal businesses, 2) higher profit from Mundra operations, which benefitted due to section11 provisions and CERC's order allowing full pass through of coal cost in the tariff booked by Mundra to the beneficiary discoms and 3) 48% YoY increase in profit of cons. green business at Rs1.4bn. Maintain BUY.

Tata Steel Ltd

ICICI Direct assigns a "buy" on Tata Steel with a target price of Rs 130 apiece, implying a decent upside of 17% from its current level. Its current market price is Rs 111.45/share. The stock falls 8.69% in 1 week. It fell 8.62% in 1 year. It gave 136.62% maximum in 3 years. In 5 years it gave 65.98% positive return. Its 52 week high is Rs 138.67/share and 52 week low is Rs 82.70/share. Tata Steel is a Metal sector stock having a market capitalisation of Rs 1,36,230 crore.

According to the brokerage, Tata Steel's share price has given a return of ~59% in the last two years (from ~Rs 70 in February 2021 to ~Rs 111 in February 2023).  "We maintain our BUY rating on the stock. We value TSL at Rs 130, based on SoTP valuation," the brokerage has said.

Titan Company Ltd

ICIC Direct has estimated a Target Price of Rs 3,030/share for the stock of Titan with a "Buy" tag. It claims an upside of 23% from its current level. The stock on NSE last traded at Rs 2,466.75/share. In a week it gained 5.15%. In 1 year it gained 0.95%. In 3 years it gained 93.47%. It gave the highest 208.05% in 5 years. Its 52 week low is Rs 1,825.05/share and 52 week high is Rs 2,791/share. It operates in a diversified sector with a portfolio including Gems/Jewellery/Watches, Eyewear etc. It has a market capitalisation of Rs 2,18,994 crore.

According to the brokerage, Titan has been an exceptional performer in the discretionary space with stock price appreciating at ~30% CAGR in the last five years. "We continue to remain structurally positive on the stock as high growth visibility justifies premium valuations and maintain a BUY on the stock Target Price and Valuation: We value Titan at Rs 3030 i.e. 62x P/E on average of FY24-25E EPS," the brokerage has said.

Disclaimer

The stocks have been picked from the brokerage reports. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.