3 Tata Group Stocks To Hold, Buy For Higher Return As Suggested By Top Brokerages

2 Brokerages have recommended investors to buy, hold 3 Tata Group stocks for higher returns. These stocks are Voltas Limited, Tata Power Company Limited, and Tata Motors. Geojit has suggested investors to hold shares of Tata Power and Voltas Limited. Meanwhile, Motilal Oswal has assigned buy call to Tata Motors. Check details below:

1. Buy Tata Motors Ltd

Motilal Oswal has suggested investors to buy Tata Motors with a target price of Rs 540 apiece. Current market price of Tata Motors is Rs 427.70 apiece with intraday fall of 1.27%. If you buy Tata Motors, you can get potential return of 26%. The stock's 52-week high is Rs 494.50 apiece and 52-week low is Rs 366.05 apiece, respectively. The company has a market capitalisation of Rs 1,42,052.90 crore.

The stock gave a return of 1% in last 1-month, 1% in last 3-months, and gave 185% return in last 3-years. The large cap stock operates in Auto sector.

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: a) a macro recovery in India, b) company-specific volume/margin drivers, and c) a sharp improvement in FCF and leverage in both JLR as well as the India business."

We reiterate our Buy rating on the stock, with a TP of ~INR540 (Mar25E-based SoTP).

2. Hold Tata Power Company Limited

Geojit has recommended investors to hold shares of Tata Power Company with a target price of Rs 223 apiece with potential return of over 10%. Last trading price of the stock is Rs 202.25 apiece with gain of 0.47%. The stock's 52-week high is Rs 298.00 apiece and 52-week low is Rs 190.00 apiece, respectively.

The company has a market capitalisation of Rs 64,625.74 crore. The mid cap Power sector stock declined 8% in last 3-months, 1% in last 1-year, gave 115% return in last 2-years, and 290% return in last 3-years.

According to Geojit, "TPCL aims to have a steady focus on increasing renewable energy capacity and expanding its distribution circle. With strong order book, and commissioning of new plants, the company is positioned to benefit from higher power demand. Hence, we revise our rating on the stock to HOLD with a revised target price of Rs. 223 based on SOTP valuation."

3. Hold Voltas Ltd

Last trading price of Voltas is Rs 895.35 apiece with intraday fall of 0.61%. Geojit has suggested investor to hold Voltas Ltd share with a target price of Rs 938 indicating a return of 5%. The stock's 52-week high is Rs 1347.75 apiece and 52-week low is Rs 737.60 apiece, respectively. The company has a market capitalisation of Rs 29,625.77 crore.

The large cap stock, operating in Consumer Durables sector, gave 15% return in last 1-month, 9% return in last 3-months, and declined 25% in last 1-year. It 25% return in last 3-years.

According to Geojit, "We expect price hike in Voltas's offerings in the upcoming quarters due to inflationary pressure. Fierce competition and higher input cost could act as near-term risk factors. Hence, we retain our HOLD rating with a target price of Rs. 938 based on 38x FY25E adj. EPS."

Strong distribution channels, competitive pricing, and enhanced marketing strategies are expected to help Voltas expand market share in the near future.

 

Disclaimer

The stocks has been picked from the brokerage report of Geojit and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.