KR Choksey Picks Multibagger Tata Stock To Buy For 45% Upside, Target price Rs 572

Leading brokerage firm KR Choksey has picked large cap Tata Group stock, Tata Motors Ltd with a target price of Rs 572 apiece. If you buy Tata Motors shares at current market price of Rs 394, you will get potential 45% return. The company has a market capitalisation of Rs 1,31,124.54 crore. Check key details below:

1. Tata Motors Stock Performance & Return

The last trading price of the stock is Rs 394 apiece with an intraday gain of 1.73%. The stock's 52-week high is Rs 528 apiece and 52-week low is Rs 366 apiece, respectively.

The stock has given multibagger returns over the years. In last 3-years, the stock has given 123% return. The stock has declined 17% in last 1-year and 10% in last 1-month.

2. Tata Motors Monthly Sales For December 2022

Tata Motors' total monthly sales for December 2022 were at 74,356 units (+6.8% YoY/ -1.5% MoM). Domestic PV sales improved by 13.4% YoY to 40,043 units (-13.0% MoM). Exports of PVs were at 364 units (+123.3% YoY/ -6.2% MoM).

Within PVs, total EV sales grew strongly at 64.2% YoY (-13.1% MoM), while total ICE PV sales for the month grew by 10.4% YoY (-12.9% MoM). Domestic CV sales for the month improved by 6.3% YoY/ 20.1% MoM to 32,954 units. Exports of CVs declined by 68.3% YoY/ 38.7% MoM to 995 units. For Q3FY23, Tata Motors' total sales grew by 14.3% YoY (-6.3% QoQ).

Domestic PV sales for the quarter grew by 32.6% YoY (-7.7% QoQ), while export PV sales grew by 70.5% YoY (+82.1% QoQ). Domestic CV sales grew by 1.3% YoY (-2.2% QoQ), while export of CVs for the quarter declined by 55.9% YoY (-37.8% QoQ).

3. Valuation

According to KR Choksey, "TTMT's domestic PV and CV businesses continue to see strong topline growth and margin improvement backed by higher volumes and realizations. JLR performance is expected to improve with better chip availability, ramp up in production, improving mix, and Refocus cost savings. FY23E EBIT and FCF targets have been reduced by the management. While we believe performance improvement is on cards, the time taken for the same is getting elongated. We apply a multiple of 18.0x on FY24E EPS of INR 31.8 and arrive at a Target price of INR 572. We maintain our "BUY" rating on the shares of Tata Motors."

4. About Tata Motors

Tata Motors Group (Tata Motors) is a $37 billion organisation. It is a leading global automobile manufacturing company.

Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's largest OEMs offering an extensive range of integrated, smart and e-mobility solutions, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of KR Choksey. 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 check with certified experts before taking any investment decision.