Shares of Tata Motors in a weak market in intra-day trade on March 22, 2021 traded lower by around 2 percent at Rs. 302.9 per share on the NSE at 2:25 pm. In comparison Nifty 50 index was down 0.42% or 61 points. The stock scaled to day's high of Rs. 307.5 and day's low of Rs. 300.1.
On a year to date basis, the stock has gained 66 percent from an opening price of Rs. 184.95 per share on January 1 to Rs. 306.45 on March 22. And now as the counter has run up sharply this year, investors are seen booking profits.
The company's passenger vehicles sales registered an increase of 119 percent y-o-y to 27,225 units and commercial vehicles sales jumped by 21 percent YoY to 33,966 units during the last month.
In its BSE filing, the auto major said, "February 2021 sales have been the highest ever sales for Tata Motors passenger vehicles in nearly 9 years (107 months)". This is despite the economic slowdown induced due to Covid 19.
At the same time, global research company Goldman Sachs has maintained its 'Sell' call on the scrip of Tata Motors but raised target price from Rs. 175 per share to Rs. 241. As per a CNBC TV 18 report, the research firm is of the view that 70% rise in share price of the counter has overshot fundamentals.
Further the firm said the target implies 20% downside from the current price levels in comparison to 10 percent upside for Indian auto companies' coverage as a whole.
On March 5, shareholders of Tata Motors voted for considering and approving the transfer of the company's passenger vehicle business entity to TML Business Analytics Services Ltd as a going concern on a slump sale basis for a lump sum consideration.