Motilal Oswal Initiates Buy On This Tata Stocks

Motilal Oswal Financial Services initiates Buy on Tata Motors Ltd. (TTMT) with a Target Price of Rs 700 apiece. The brokerage claims a potential upside of 28% from its current level, considering the assigned target price. The shares of TTMT over the past 6 months soared 50.34%. On Monday, the stock hit a new 52-week high.

TTMT is a Tata Group's large-cap company from the Automobile sector. The company has a market capitalisation of Rs 2,08,755.68 Crore.

Valuation & view

According to Motilal Oswal Financial Services, TTMT should witness a healthy recovery as supply-side issues ease (for JLR) and commodity headwinds stabilize (for the India business). It will benefit from: a) CV upcycle and stable growth in PVs, b) company-specific volume/margin drivers, and c) a sharp improvement in FCF and leverage in both JLR as well as the India business. "The stock trades at 19.3x/16.2x FY24E/FY25E consolidated P/E and 5x/4.2x EV/EBITDA. We reiterate our BUY rating, with a TP of ~INR700 (Jun-25E based SoTP)," the brokerage has said.

Stock Movement

Tata Motors' shares last traded at Rs 628.50 apiece, up 1.63% from its previous close. The stock hit the 52-week high on Jul 10, 2023, at Rs 634.60 apiece and a 52-week low on Dec 26, 2022, at Rs 375.50 apiece, respectively.

The stock surged 6.29% in the past 1 week, while 9.68% in the past 2 weeks. It jumped 11.79% in 1 month, 37% in 3 months and 50.34% in 6 months, respectively. It has given 43.83% positive return in 1 year, 105.16% in 2 years and 484.38% in 3 years, respectively. It has given 134.65% positive return in the past 5 years.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal Financial Services. 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.n.