3 Quality Tata Stocks To Buy For Strong Gains As Recommended By Top Broking Firms

Amid volatility in the Market, the leading brokerage firms such as ICICI Direct, Motilal Oswal, and Bonanza maintain their bullish outlook on the stock 3 quality Tata Group stocks, namely Tata Consultancy Services Ltd. (TCS), Tata Motors Ltd. and Titan Company Ltd. The brokerage sees a decent upside in the stocks. Check below to know more:

1. Tata Consultancy Services Ltd. (TCS)

ICICI Direct has placed a "Buy" on the stock of TCS with a target price of Rs 3,780/share. The stock is likely to give up to 21% return if it is purchased at the current market price. The stock today opened at Rs 3,169.65/share, currently trading at Rs 3,133.65/share.

The stock has fallen 4.61% in a week and 10.23% in 1 month, respectively. It has fallen 14.76% in 1 year. However, it jumped 74.17% in 3 years and 118.55% in 5 years, respectively.

According to ICICI Direct, TCS' share price has grown by ~2.3x over the past five years (from ~Rs 1,413 in March 2018 to ~Rs 3,185 levels in March 2023). "We maintain our BUY rating on the stock. We value TCS at Rs 3,780 i.e. 26x P/E on FY25E EPS," the brokerage has said.

2. Tata Motors Ltd. (TTMT)

Motilal Oswal has assigned a "Buy" on Tata Motors with a target price of Rs 540/share. It can given up to 31% gains if you buy the stock now. The stock today opened at Rs 415.60/share, currently trading at Rs 411.90/share.

The stock has fallen 3.49% in 1 week, and 5.55% in 1 month, respectively. It has fallen 1.84% in 1 year. It gave 402.83% multibagger return in the past 3 years, whereas, in the past 5 years it gave 22.77% positive return.

According to Motilal Oswal, TTMT should witness a gradual recovery as supply-side issues ease (for JLR) and commodity headwinds stabilize (for the India business). It will benefit from: 1) a macro recovery in India, 2) company-specific volume/margin drivers, and 3) a sharp improvement in FCF and leverage in JLR as well as the India business. "The stock trades at 15.2x/12.3x FY24E/FY25E consolidated P/E and 3.8x/3.2x EV/EBITDA. We reiterate our BUY rating on the stock with a TP of ~INR540 (Mar'25E-based SoTP)," the brokerage has said.

3. Titan Company Ltd.

Bonanza has a "Buy" on Titan with a target price of Rs 2,875/share. If you buy the stock now, it can fetch up to 18% gains. The stock today opened at Rs 2,462/share, currently trading at Rs 2,449.05/share.

In 1 week, it gained 3.37% and declined 1.79 in 1 month. In 1 year it declined 9.15%, however, it gained 145.32% in 3 years and 179.29% in 5 years, respectively.

According to Bonanza, The outlook for Titan remains robust with a positive view and expectations of stable gains in margins on account of scale-up in the emerging businesses, robust growth in Eyewear segment and expectations from Jewellery business to augment due to latest wedding trends.

The brokerage added, "We expect Titan to deliver Revenue/EBITDA/PAT CAGR of 28%/27%/29% and the ROE/ROCE to reach at 22%/32% respectively by FY24E. We initiate coverage rating a BUY with a Target Price of ₹ 2,875 (78x 5 yr avg. P/E for FY24E forward EPS of 36.9) and a potential upside of 20%. "

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.