Motilal Oswal Initiates "Buy" On This Tata Stock, Claims 22% Upside, Soars 180% In 3 Yrs

Motilal Motilal Financial Services initiates coverage of Tata Motors Ltd with a positive outlook. The brokerage recommends investors to "Buy" the stock for a target price of Rs 540/share. The brokerage claims a potential upside of up to 22% with the given target price and the current market price of the stock. Tata Motors is a large cap Auto Sector stock of Tata Group. It offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defense vehicles to the world. Below are the key highlights of the stock:

Stock Outlook, Performance, 52-Week Low/High

The stock of Tata Motors last traded on NSE at Rs 443/share, up 0.70% from its previous close. It surged 0.44% in the past 1 week. Whereas it gave a positive return of 9.88% in 1 month and a 4.53% positive return in 3 months, respectively. In the past 1 year, it has fallen 10.17%. It gave the highest 179.5% positive return in the past 3 years. In 5 years it gave 19.96% positive return.

The stock recorded its 52 week low on 12 May 2022 at Rs 366.20.share and 52 week high on 17 February 2022 at Rs 511.50/share, respectively. Its market value is Rs 1,47,133 crore.

 

Buy for a target price of Rs 540/share

According to the Motilal Oswal Financial Services, 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. "The stock trades at 16.2x/13.2x FY24E/FY25E consolidate P/E and 4.1x/3.4x EV/EBITDA. We reiterate our Buy rating on the stock, with a TP of ~INR540 (Mar25E-based SoTP)," the brokerage has said.

Disclaimer

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